When a consumer maximizes the value of goods by maximum consumption and does not pay heed to depletion of resources, it is called the tragedy of commons.
The tragedy of the commons is an economic problem that comes to surface when people put personal interests ahead of the welfare or benefit of society. Everyone loses out as a result of excessive consumption and eventual resource depletion. A resource needs to be limited, subject to competition for consumption, and non-excludable for a tragedy of the commons to arise.
Private property rights, government control, or the creation of a collective action agreement are all potential remedies for the tragedy of the commons. Listed below is a case of tragedy of commons.
The amount of food must grow at the same rate as the world's population. However, fishing has the potential to wipe out numerous species. For instance, the Pacific bluefin tuna population has reached an all-time low of about 3% of its original population due to overfishing. This not only puts the Pacific bluefin tuna in danger, but it also raises the possibility of further harming the marine ecosystem.
Learn more about the tragedy of commons here:
https://brainly.com/question/22075885
#SPJ4
which of the following best describes the idea of a political business cycle? group of answer choices politicians will use fiscal policy to cause output, real incomes, and employment to be rising prior to elections. politicians are more willing to cut taxes and increase government spending than they are to do the reverse. despite good intentions, various timing lags will cause fiscal policy to reinforce the business cycle. fiscal policy will result in alternating budget deficits and surpluses.
Politicians manipulate the economy to increase their chances of re-election. This best describes the idea of the political business cycle.
Political business cycles are fluctuations in economic activity caused by external intervention by political actors. The term political business cycle is mainly used to describe stimulating the economy just before an election to increase the chances of the current administration's re-election.
Despite many attempts to prove their existence, empirical evidence of political business cycles remains rather vague.
The theory of the political business cycle is based on several assumptions. Economists generally agree that there is a short-term trade-off between capacity utilization and employment in the economy, and the rate of inflation.
To learn more about the political business cycle
https://brainly.com/question/28342813
#SPJ4
rolling company bonds have a coupon rate of 6.60 percent, 23 years to maturity, and a current price of $1,216. what is the ytm? the current yield?
5.11% is the ytm.
5.43% is the current yield.
Yield to maturity = interest+(redemption value-market value)/years to maturity / (redemption value+market value)/2
66+(1000-1216)/23 / (1000+1216)/2 = 56.608/1108 = .05109*100 = 5.11%
Current Yield =( interest / market price)*100 = 66/1216 =.05427*100 = 5.43%
Yield to maturity (YTM) is the total return a bond would make if it paid all the interest and repaid the principal. YTM is basically the internal rate of return (IRR) of holding a bond to maturity.
The current yield of a bond is the annual income from the investment, including interest and dividend payments, divided by the security's current price. Yield to maturity (YTM) is the expected total return from holding a bond to maturity.
Learn more about ytm here: https://brainly.com/question/15177095
#SPJ4
considering the business systems model, what are five key issues that iuiga must address in order to be a flourishing system?
Considering the business systems model, the five key issues that Iuiga must address to be a flourishing system are accounting systems and processes, inventory management, customer relationship management, point of sale processes, and payroll systems and processes.
The system helps business organizations to achieve their goals. A business system is a combination of policies, personnel, equipment, and computer facilities to coordinate the activities of a business organization. It establishes the rules and procedures of that organization, which are to be governed. The business system decides how data must be handled and is methodically processed. It also controls the procedures of the processed data and the results to be displayed.
Learn more about the business systems here:
https://brainly.com/question/14998945
#SPJ4
purchasing the right to use a company's trademark to expand more rapidly and use copyrighted materials is known as
Purchasing the right to use a company's trademark to expand more rapidly and use copyrighted materials is known as: Franchising
Franchise ownership has a low failure rate. In comparison to launching an independent firm, a franchise comes with a proven business model that has already proven successful in the market, giving the owner superior success odds.
Throughout the course of the business, a franchise owner receives invaluable assistance. After purchasing a franchise, the company owner receives ongoing training and support required for management and marketing.
Learn more about Franchising here,
https://brainly.com/question/3687222
#SPJ4
a contract must be in writing to be enforceable if its performance is not likely within a year of its formation, even if that performance is possible. group of answer choices false true
A contract must be in written form for being enforceable, where the activities involved under the contract are to be performed over a period exceeding at least one year. Therefore, the statement given above is true.
A contract can be referred to or considered as a legal agreement enforceable by law. Each contract is such that it involves the engagement of at least two parties.
A contract can be in writing or oral form. However, when there is a condition of performance of activities in a contract that exceeds a period of one year, then such contract must be written and documented.
Learn more about a contract here:
https://brainly.com/question/2669219
#SPJ4
an increase in which one of the following will have a negative effect on the price of a call option? a. underlying stock price b. time remaining to option expiration c. option strike price d. volatility of the underlying stock price
An increase in option strike price will have a negative effect on the price of a call option.
The strike price of an choice is the charge at which a put or name alternative may be exercised. It's also known as the exercising price. choosing the strike rate is one of two key decisions an investor or trader have to make whilst choosing a specific option.
Name options with better strike fees are usually less steeply-priced than people with lower strike costs as it'll take a larger fee circulate within the underlying market for them to be at the cash.
If an investor buys both a call and a put for the identical strike charge at the equal expiration date, they have entered into a straddle position.
Learn more about strike price here:- https://brainly.com/question/15571230
#SPJ4
When a corporation first decides to issue stock to the public, it engages in a(n)
a. secondary offering.
b. initial public offering.
c. seasoned equity offering.
d. none of the above
Answer: b. initial public offering.
When a corporation first decides to issue stock to the public, it engages in a initial public offering. An initial public offering occurs when a private company.
In essence, an IPO indicates that a corporation ownership is changing from private to public. As a result, the IPO process is also known as "going public." The term "IPO" refers to an initial public offering. An IPO occurs when a privately held company lists its shares on a stock exchange, allowing the general public to purchase them. Many people think of IPOs as big money-making opportunities—when high-profile companies go public, their share prices skyrocket.
To learn more about corporation, click here.
https://brainly.com/question/28097453
#SPJ4
Under the provisions of which of the following can an employee who has served in the armed forces and successfully completed his/her tour of duty, be reinstated upon returning to work in his/her previous position on the job?
USERA
OWBPA
ADA
WARN
The answer of the question is USERA under which an employee who has served in the armed forces and successfully completed his/her tour of duty, be reinstated upon returning to work in his/her previous position on the job
Almost all employers, regardless of size, are subject to USERRA, including the federal government. Although the information in this article mostly refers to private companies, there are similar requirements in the law that apply to employers in the federal, state, and local governments. You should refer any specific inquiries to the State Director of the Veterans' Employment and Training Service, who is listed under the U.S. Department of Labor in the government section of the phone book.The Internet has further USERRA information available. A number of the most frequently asked questions about the law are addressed by an interactive system called The USERRA Advisor.
learn more about USERRA here
https://brainly.com/question/13942727
#SPJ4
if resource demand varies widely over the life of the project, the project manager can try to use slack (delaying noncritical activities) to accommodate insufficient resources. this process is called .
If resource demand varies widely over the life of the project, the project manager can try to use slack (delaying noncritical activities) to accommodate insufficient resources. this process is called resource smoothening.
Resource smoothing takes place when time constraint takes priority. The main objective is to complete the given task by the required date while avoiding any difficulty that come across during the whole process.
Resource smoothing is also a management technique that tells about project's critical tasks. For example, If you have a project with four steps. but according to you it can be completed in a minimum of three days, but your client needs the project done in two days.
To learn more about Resource smoothing , here
brainly.com/question/29316064
#SPJ4
on january 2, 20x1, the blue legal clinic issued check 2108 for $430 to establish a petty cash fund. indicate how this transaction would be recorded in a general journal.
The journal entry for establishing petty cash fund will be- Debit Petty cash fund account ($430), credit cash account ($430).
A petty cash fund is a nominal amount of company money that is frequently kept on hand (for example, in a secured drawer or box) to cover unimportant or trivial expenses like office equipment or worker reimbursements.
Periodic reconciliations of a petty cash fund are performed, and transactions are also noted just on financial statements. Each department may possess its own petty cash fund in bigger companies. Petty cash funds can be used to get around some internal control systems. Petty cash is available, but that doesn't imply everybody can utilize it for everything they require. Strict control activities are used by many companies to manage the fund.
Learn more about petty cash fund here:
https://brainly.com/question/15258796
#SPJ4
activity-based costing determines the cost of activities and traces their costs to cost objects on the basis of the cost object's utilization of units of activity.
activity-based costing determines the cost of activities and traces their costs to cost objects on the basis of the cost object's utilization of units of activity.
the given statement is true.
Activity-Based Costing: Definition of Method and Benefits.
Using the activity-based costing method, overhead and indirect costs are allocated to related goods and services. In contrast to conventional costing techniques, this accounting method of costing acknowledges the connection between costs, overhead activities, and manufactured goods, allocating indirect costs to products less arbitrarily. However, some indirect costs, like the salaries of the management and office staff, are challenging to relate to a specific product.
Since activity-based costing improves the reliability of cost data, it produces nearly true costs and more accurately categorizes the costs incurred by the company during its production process. ABC is primarily used in the manufacturing industry.
Know more about utilization visit:
https://brainly.com/question/14149928
#SPJ4
this type of industry is economically efficient: group of answer choices oligopoly monopoly more than one of these is correct monopolistic competition perfect competition
This type of industry is economically efficient: perfect competition market.
Perfect competition occurs in economic theory when all companies sell identical products, market share has no effect on the price, companies can enter and exit without barriers, buyers have perfect or full information, and companies cannot determine prices.
A perfectly competitive firm is referred to as a price taker because the pressure of competing firms forces them to accept the market's prevailing equilibrium price. In a perfectly competitive market, if a company raises the price of its product by even a penny, it will lose all of its sales to competitors.
To know more about the Perfect competition market, click here.
https://brainly.com/question/14412690
#SPJ4
If an organization deals successfully with change and has created procedures and systems that can be adjusted to the environment, the existing security improvement program will probably continue to work well.a. Trueb. False
If an organization deals successfully with change that can be adjusted to the environment, the existing security improvement program will probably continue to work well is a true statement.
The current security enhancement program will probably continue to function well if a company properly manages change and has developed policies and systems that can be modified to the environment. A company can better understand what happened and how after an incident with the use of digital forensics.
The concept of an organization refers to how firms are set up and how that arrangement enables them to achieve their objectives. Businesses are often built to concentrate on either making a profit or helping society. A company is considered a for-profit entity when it prioritizes making money.
To learn more about Organization visit: https://brainly.com/question/28497652
#SPJ4
sara paid $175,000 for her house in 2013 and sold it for $325,000 in 2021. what function did the house serve during the time she owned it?
M1 money provide consists of those monies that are very liquid such as cash, checkable (demand) deposits, and traveler's tests M2 cash supply is much less liquid in nature and consists of M1 plus savings and time deposits, certificates of deposits, and money market funds.
What is M1 definition and calculation?The M1 category constitutes the most liquid part of the forex circulation and encompasses the monetary base. Therefore, the formulation is as follows: M1 = cash and currency in circulation + checkable deposits + traveler's checks. Another way of writing it is, M1 = M0 + Demand Deposits.
What are three kinds of economic accounts the place you can earn activity on your money?In general, interest-earning bills are low danger when in contrast to investments such as stocks, however the returns are lower. You can pick from a range of different sorts of bills which include financial savings accounts, CDs, cash market funds, Treasury bills, and bonds.
Learn more about supply money here:
https://brainly.com/question/12654446#SPJ4question content area top part 1 the conity corporation has an electric mixer division and an electric lamp division. of a $14,000,000 bond issuance, the electric mixer division used $9,300,000 and the electric lamp division used $4,700,000 for expansion. interest costs on the bond totaled $1,000,000 for the year. the above interest costs would be considered a(
The above interest costs would be considered a product sustaining cost.
No matter how many units are produced, sustaining costs are the expenses incurred to keep a product or service line in production. A service sustaining cost is another name for a product sustaining cost. An example of a product sustaining cost is the cost of product design. An illustration of a product sustaining cost is design costs. The amount of time designers devote to creating and refining the final product, the mould, and the manufacturing process determines design expenses over time. Product development costs, engineering change costs, and marketing expenses for the introduction of new products are other instances of costs associated with maintaining a product.
To know more about Product sustaining cost:
https://brainly.com/question/13914821
#SPJ4
discuss whether the project is feasible by addressing each of the three triple constraint components: scope, cost, and timeline.
According to the triple constraint theory, any project will have three constraints: time, scope, and budget.
What are a project's three triple constraints?The three basic constraints that project managers must be aware of are time, scope, and money. These are sometimes known as the triple limits or the project management triangle.
What are the three project restrictions and how can you define each one with examples?For instance, you have given the project a time limit when you set a completion and release date deadline. According to the triple constraint theory, any project will have three constraints: time, scope, and budget. And these restrictions are connected to one another.
To know more about three triple constraint visit:-
https://brainly.com/question/29650394
#SPJ4
jim ryan deposited $8,000 at national bank at 6% interest compounded quarterly. what was the effective rate (apy)?
The effective annual rate for $8,000 that jim ryan deposited at bank with 6% interest compounded quarterly was 6.14%
What is effective annual rate?It is the real return on a savings account or any interest paying investment when the effects of compounding over time are taken into account. It also reflects the real percentage rate owed in interest on a loan, a credit card, or any other debt.
How to calculate the effective annual rate?
The formula for effective rate is
r = (1 + (i/n))^n - 1
where n = 4 (because it's compounded quarterly
i = 0.06 (the interest from the national bank)
r = ( 1 + ( 0.06 / 4))^4 - 1
= (1.015)^4 - 1
= 0.0614
= 6.14% (rounded)
Learn more about effective annual rate https://brainly.com/question/17613825
#SPJ4
Standardized agreements to buy or sell a specified amount of currency at a date in the future at a pre-determined price are called_____.
Standardized agreements to buy or sell specified amount of currency at date in future at pre-determined price are called bonds.
What is a standardized agreement?A standardized contract, also referred to as a standard form contract, is an arrangement between two parties wherein one party establishes the terms and the counterparty has little to no flexibility in changing them. These "boilerplate" or "take it or leave it" contracts, which are most frequently used in business-to-consumer transactions, enable the widespread distribution of goods and services. Standard form contracts are frequently used, despite the fact that it may seem unfair to give the counterparty no room for negotiation. It's possible that you have already signed a number of agreements when making purchases of goods or services in your daily life. Standardized agreements help keep transaction costs down and do away with the need to haggle over terms with each customer a company deals with. They may, however, be misused and used to deceive customers if they are employed improperly.
To learn more about standardized agreement, visit:
https://brainly.com/question/29661453
#SPJ4
please conduct mrp (material requirements planning) under lot-size ordering with a lot size of 90 units for frames and 75 units for wood sections. note: please download and complete the mrp sheet attached(mrp exam template single template.xlsx download mrp exam template single template.xlsx), and upload your completed mrp sheet for your answer. each shutter consists of three slatted wood sections and two frames a firm that produces wood shutters has received two orders: one for 150 shutters (week 5) and one for 180 shutters (week 9) the wood sections are made by the firm, and fabrication takes 2 weeks the frames are ordered, and lead time is 1 week assembly of the shutters requires 1 week there is a scheduled receipt of 85 wood sections in (i.e., at the beginning of) week 1.
Material requirements/necessities planning (MRP) is a system for calculating the substances and elements needed to manufacture a product.
It consists of three main steps: taking inventory of the materials and factors on hand, figuring out which additional ones are wanted and then scheduling their manufacturing or purchase.
What is the importance of material requirement planning?When executed correctly, cloth requirements planning helps to ensure that there are ample materials and factors handy for production. It also helps to decide how a whole lot finished items and through what date will be available for transport to the customer.
The three simple inputs of an MRP gadget include the Master Production Schedule (MPS), Inventory Status File (ISF), and Bill of Materials (BOM).
Learn more about material requirements planning here:
https://brainly.com/question/15176279#SPJ4you bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the price level. before taxes, you experienced question 19 options: both a nominal gain and a real gain, and you paid taxes on the nominal gain. both a nominal gain and a real gain, and you paid taxes only on the real gain. a nominal gain, but no real gain, and you paid taxes on the nominal gain. a nominal gain, but no real gain, and you paid no taxes on the transaction.
b- a nominal gain, but no real gain, and you paid taxes on the nominal gain.
Over the course of the next year, after you purchased some stock, the price per share and the total price level both rose by 5%. You had a nominal gain but no real gain prior to paying taxes, and you had to pay taxes on the notional gain.
A tax is a necessary fee or financial charge that a government imposes on a person or a business in order to raise money for public projects like building the greatest infrastructure and services. Different public spending initiatives are then funded with the funds that have been raised.
According to the established legislation, it will attract harsh repercussions if one does not pay taxes or refuses to participate.
Different Taxes
There are numerous highly popular tax kinds, including:
Money tax is a portion of income earned that is given to the state or federal government.
Employers withhold a portion of an employee's compensation as payroll tax, which is then paid to the government on the employee's behalf to support Medicare and Social Security services.
Corporate tax is a portion of corporate profits that the government withholds as revenue to support federal programs.
Taxes imposed on specific goods and services known as sales tax; varies by jurisdiction.
To know more about taxes visit:
https://brainly.com/question/16423331
#SPJ4
which of the following five scenarios illustrate markets in action? (i) you rent a book at the university bookstore. (ii) you bargain at a street stall. (iii) you mow your own lawn. (iv) you get a manicure at a nail salon. (v) you grow your own vegetables and consume them yourself. (i), (ii), and (iii) (iii) and (v) (i), (iii), and (v) (i), (ii), and (iv)
Borrowing books at the university bookstore, haggling at the stalls, buying manicures at the nail salon, they all work at the market.
In open markets, prices are free to move in response to changes in supply and demand, redistributing resources to the most valuable uses. Market equilibrium, a state of equal supply and demand, results from predictable responses of buyers and sellers to price incentives.
Manufacturers, wholesalers, and retailers all sell and purchase goods on markets. Stores, malls, and the internet are a few examples of this. The phrase may also be used to describe a big group of people that buy products or services. Usually, market players engage in rivalry with one another.
To learn more about market
https://brainly.com/question/17284274
#SPJ4
the convention nominating system worked better in theory than in practice because it resulted in the selection of delegates
The convention nominating system worked better in theory than in practice because it resulted in the selection of delegates.
Grant authority to someone as part of a delegation. For example, a hotel manager asks a front desk clerk to run the hotel for a few hours with the authority to make decisions about customer inquiries and complaints.
State representatives go to the national convention to cast votes and confirm the selection of candidates. However, if no candidate wins a majority at the primaries and caucuses, Congressional representatives will elect that candidate. This is done through an additional voting round.
The delegated leadership style is a low task and relationship behavioral leadership approach in which the leader empowers individuals to exercise autonomy. Applying this approach means showing individuals the big picture and trusting them to deliver agreed-upon outcomes.
Learn more about delegated https://brainly.com/question/25944287
#SPJ4
Elasticity of supply is greater in the long run than in the short run because
1. Business owners have more time to expand factories and buy equipment
2. Consumers have more time to compare quality and prices of products
3. More competitors are able to enter the industry
The elasticity of supply is more significant in the long run than in the short run because business owners have more time to expand factories and buy equipment.
The supply tends to be more elastic in the end than in the short run because it usually takes time for producers to modify their output in reaction to charge modifications. You just studied 5 terms.
Inside the quick run, the fee of potatoes falls beneath $6, possibly to $4. in the long run, it rises a bit, perhaps to $5. Think a monopoly is earning positive economic profits because of technological exchange, the monopoly's expenses fall.
Learn more about business here: https://brainly.com/question/24448358
#SPJ4
A hiking boot’s profits are declining because new competition has entered the market, but its cost has also declined due to increased volume of production. What stage of the product development life cycle is the hiking boot in?.
Maturity – In the maturity stage, income gradual down, indicating that the market has begun to reach saturation.
This is also one of the tiers of the product lifestyles cycle when pricing will become competitive. This makes the earnings margins thinner.
What is a key characteristic of the maturity stage?The mature stage's primary characteristic is that income volumes are nevertheless developing but at a slower rate. The nearer to the end of the mature, the slower will be the boom in sales volume. Competition for market share and clients is additionally greater intense
Companies are all examples of organizations in the maturity stage. They are well known, trusted, and proceed to maintain a high market share in their industries.
Learn more about product life cycle here:
https://brainly.com/question/12074531#SPJ4in an internal investigation, it is important to communicate to employees that it is against policy to destroy or remove any documentation from a patient’s medical record. document reviews can be extensive and may involve which of the following? i. emails ii. notes iii. mobile phone calendars a. i, ii, and iii b. ii and iii only c. i and ii only d. i and iii only
Document reviews can be extensive and may involve emails, notes, mobile phone calendars.
Which records the health care services given to a patient and includes the patient's characteristics and medical history to enable continuity of care?A Continuity of Care Record, like any personal health record (PHR), includes details about the patient's demographics, insurance and healthcare provider information, medication lists, allergies, and recent medical procedures, among other things.
Who is the true owner of the original, paper copy (or digital copy) of the medical record?The medical provider, practice, or institution that created the record is the owner of the medical records in the states that are governed by federal regulations. Since the information in a medical record pertains to a specific individual, the patient has traditionally been deemed to own it.
To know more about internal investigation visit :
https://brainly.com/question/29318129
#SPJ4
using technology to transform a market or to create an entirely new market is called creating a(n) innovation.
A disruptive innovation is one that uses technology to change an existing market or to create a brand-new one.
What exactly is a market?A market is a meeting ground for consumers and sellers where they can trade. Market system explains how different companies are categorized and achieve the particular on how fiercely and in what ways they compete with one another for customers' services and goods. The black market, the auction market, and the financial sector are more examples.
What kind of market is most typical?Oligopoly & monopolistic competition are the two kinds of market structures that are most prevalent. There are only a few companies in an oligarchy, and each one is aware of its competitors. Airlines and automakers are two examples of oligopolistic industry.
To know more about market visit:
https://brainly.com/question/13414268
#SPJ4
Which of the following best defines an interpersonal relationship in which one individual (or group) has the ability to cause another individual (or group) to take an action that would not be taken otherwise?Group of answer choicesAttitudeExpertiseType: MCLeadershipPowerMotivation
A power is best defined as an interpersonal relationship in which one individual (or group) has the ability to cause another individual (or group) to take an action that would not be taken otherwise. The Option D is correct.
What does power mean?In social science, power refers to the social production of an effect that determines the capacities, actions, beliefs or conduct of actors. It does not exclusively refer to the threat or use of force (coercion) by one actor against another, but may also be exerted through diffuse means (such as institutions).
A power take structural forms, as it orders actors in relation to one another (such as distinguishing between a master and a slave) and discursive forms, as categories and language may lend legitimacy to some behaviors and groups over others.
An authority is often used for power that is perceived as legitimate or socially approved by the social structure. A power can also be seen as good and as something inherited or given for exercising humanistic objectives that will help, move and empower others as well.
Read more about power
brainly.com/question/1634438
#SPJ1
a stock has a beta of 1.20, the expected return on the market is 10 percent, and the risk-free rate is 4.1 percent. what must the expected return on this stock be? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
If a stock has a beta of 1.20, the expected return on the market is 10 percent, and the risk-free rate is 4.1 percent. The expected return on this stock is :11.18%.
How to find the expected return?Using this formula to find the expected return
Capital Asset Pricing Model = Expected Return = Risk free rate + Beta [Return on market]
Rs = Rf + B(Rm - Rf)
Let plug in the formula
Rs = 4.1% + 1.20 x (10% - 4.1%)
Rs = 4.1% + 7.08%
Rs = 11.18%
Therefore the expected return is 11.18%.
Learn more about expected return here:https://brainly.com/question/25821437
#SPJ1
during and in the aftermath of the financial crisis of 2007-2009, planned investment fell substantially, despite significant decreases in the real interest rate. which of the following factors related to the planned spending function could explain this? (check all that apply.) a. an increase in financial frictions. b. a decrease in the marginal propensity to consume. c. a decrease in autonomous net exports. d. a decrease in firms' planned autonomous investment.
The following factors related to the planned spending function could be :-
A decrease in firms' planned autonomous investment and An increase in financial frictions.
Autonomous investment is the portion of the overall funding made via a central authority or different institution independent of monetary issues. those can encompass authorities investments, funds allocated to public goods or infrastructure, and any other type of investment that is not dependent on modifications in GDP.
Autonomous investment is investment Spending that doesn't rely upon the extent of real GDP, or Y.
Autonomous investments encompass stock replenishment, government investments in infrastructure projects including roads and highways, and other investments that keep or enhance a rustic's economic ability.
Learn more about autonomous investment here : https://brainly.com/question/17234770
#SPJ4
when the fed increases the money supply, the interest rate decreases. this decrease in the interest rate increases consumption and investment demand, so the aggregate-demand curve shifts to the right. a. true b. false
when the fed increases the money supply, the interest rate decreases. this decrease in the interest rate increases consumption and investment demand, so the aggregate-demand curve shifts to the right.
This statement is TRUE.
The total quantity of demand for all finished products and services generated in an economy is measured as aggregate demand. The total amount of money spent on those goods and services at a particular price level and time is known as aggregate demand.
What Elements Affect Aggregate Demand?1) Effect of net exports. Since domestic goods become comparatively more expensive as domestic prices rise, demand for exports declines while import demand rises.
2) Real Balances,
3) the impact of interest rates
4) inflation expectations
Learn more about aggregate demand here:
https://brainly.com/question/29349235
#SPJ4