When prices fall and the cash balances that you hold in your wallet are worth more allowing you to purchase more with your money, then this explains why the aggregate demand curve is downward sloping. the effect that describes this phenomena is the: nominal income effect real balances effect interest rate effect foreign trade effect?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When prices fall and the cash balances that you hold in your wallet are worth more allowing you to purchase more with your money, then this ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
One person's spending becomes another person's income. This statement is a. the basis for all economics. b. the Quantity Theory of Money. c. the Marginal Productivity Theory of Resource Allocation. d. the Circular Flow Model. e.
Answers (1)
The store purchases used goods for resale from people that bring items to the store. since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register.
Answers (1)
Sellers of a good bear the larger share of the tax burden when a tax is placed on a product for which the a. supply is more elastic than the demand. b. demand in more elastic than the supply. c. tax is placed on the sellers of the product. d.
Answers (1)
A firm's profit margin is 5%, its debt ratio is 56%, and its dividend payout ratio is 40%. If the firm is operating at less than full capacity, then sales could increase to some extent without the need for external funds, but if it is operating at
Answers (1)
What portion of discretionary spending is typically spent on defense? about half about two thirds about one fourth about one third
Answers (1)
New Questions in Business
When Crossett Corporation was organized in January 2018, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock.
Answers (1)
If the market is in equilibrium, then an option must sell at a price that is exactly equal to the difference between the stock's current price and the option's strike price. a. True b. False
Answers (1)
You are considering buying a share of stock in XYZ Corporation. At the end of years 1, 2, and 3 the stock will pay you a dividend of $15. In addition, at the end of the third year you expect to sell the share of stock for $100.
Answers (1)
Who is responsible for reporting identity fraud? Choose one answer. a. The victim of fraud b. The police c. Any of the three credit reporting agencies d. The company that accepted a stolen credit card or false information
Answers (1)
Your company just received dresses from a new dress designer from China to be sold at your business. These simple dresses can be wrapped on an individual in many ways to create a simple dress, as a top blouse only, or as an "After 5" dressier piece.
Answers (1)