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An increase in nominal GDP impacts the demand for money in different ways. It causes the need for money to increase as more US products are sold to different countries, the US dollar value increases on importing goods from other countries. More money is needed in circulation because more goods can be bought with the US dollar from other countries as it has more value than the currency of other countries in which we are importing from.
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When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
Supply increases and demand is constant?
if there is an increase in supply ,there is a corresponding increase in demand. perishable goods such as fresh tomatoes may increase in supply because there are in season.THIS IS ONE OF THE EXCEPTION TO THE RULE
What is the relationship between demand for money and interest rates?
as interest rates increase, demand for money increases.
If income increases demand is likely to?
Increase
What is the relationship between price and demand for a Giffen good?
The relationship between price and demand for a Giffen good is unique because as the price of the good increases, the demand for it also increases. This is contrary to the law of demand, where an increase in price leads to a decrease in demand.
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
Supply increases and demand is constant?
if there is an increase in supply ,there is a corresponding increase in demand. perishable goods such as fresh tomatoes may increase in supply because there are in season.THIS IS ONE OF THE EXCEPTION TO THE RULE
What is the relationship between demand for money and interest rates?
as interest rates increase, demand for money increases.
If income increases demand is likely to?
Increase
What is the relationship between price and demand for a Giffen good?
The relationship between price and demand for a Giffen good is unique because as the price of the good increases, the demand for it also increases. This is contrary to the law of demand, where an increase in price leads to a decrease in demand.
What happens if demand and supply increase?
the price and value of the item will decrease.
When will gas prices increase?
Gas prices increase when the demand increases compared to the supply, or when the cost of oil increases (due to demand, or if raised arbitrarily by the producers).
When the population increases you can expect overall demand to?
Increase
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
How is the law of supply similar to the law of demand?
If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.
State what the law of supply and demand shows and describe how it works?
If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease
What will cause the capital stock when it increases?
Increases in the stock of capital will cause which of the following?The demand of labor increases.The demand of labor decreases.Selected answer No change in the demand of labor.First increase then decrease the demand of labor
