Sign In
Ask Question
Business
Salma Porter
27 February, 19:17
A change in money income of consumers will
+1
Answers (
1
)
Phoenix Lynch
27 February, 20:28
0
It depends on which way it goes. If the supply increases and prices stay the same, the disposable income increases in a meaningful way. That condition will cause the Fed either to raise interest rates, or the price of goods will respond to the increased demand or a third alternative could be that manufacturers will increase production (not very likely but it could happen).
If the supply of money decreases (by people being laid off for example) then the opposite of all the events listed above will or can occur. The fed could become more accommodating and lower interest rates. The price of good will decrease unless manufacturers increase their inventory (which not really healthy for an economy) or they could decrease production which will further decrease the labor force which will put the economy in an endless vicious cycle - - one no one wants.
Comment
Complaint
Link
Know the Answer?
Answer
Not Sure About the Answer?
Get an answer to your question ✅
“A change in money income of consumers will ...”
in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
If the information content, or signaling, hypothesis is correct, then a change in a firm's dividend policy can have an important effect on its stock price and cost of equity. True or False?
Answers (1)
Rita's Coffee Shop makes a blend that is a mixture of two types of coffee. Type A coffee costs Rita $5.45 per pound, and type B coffee costs $4.30 per pound. This month, Rita made 177 pounds of the blend, for a total cost of $872.65.
Answers (1)
For the year ended December 31, a company has revenues of $317,000 and expenses of $196,000. The company paid $50,000 in dividends during the year. The balance in the Retained earnings account before closing is $81,000.
Answers (1)
Studios reported a net capital loss of $30,000 in year 5. it reported net capital gains of $14,000 in year 4 and $27,000 in year 6. what is the amount and nature of the book-tax difference in year 6 related to the net capital carryover?
Answers (1)
Eduardo has always wanted to operate his own fast food restaurant but he knows the high failure rate of restaurants. To increase his chance of success, he should consider?
Answers (1)
New Questions in Business
When you need to limit your spending, you should start by reducing your variable expenses. False True
Answers (1)
What is critical in determining whether something is produced as a public good
Answers (1)
19. Regarding alternate backup sites, which of the following is a low-cost site? a. Hot-site b. Mobile-site C. Cold-site d. Warm-site
Answers (1)
Cyberlaw consists of: a) Only state statutes. b) Traditional legal principles that have changed because of technology. c) Laws that are written on computers, smartphones, tablets or other technology. d) Only federal statutes
Answers (1)
Sun Devil Hair Design has the following transactions during the month of February. February 2Pay $600 for radio advertising for February. February 7Purchase beauty supplies of $1,200 on account.
Answers (1)
Home
»
Business
» A change in money income of consumers will
Sign In
Sign Up
Forgot Password?