Your answer would be they offer Higher interest rates.
Answer:
The correct answer is letter "A": higher employment, higher output, and a higher price level.
Explanation:
Expansionary policy is a macroeconomic concept that focuses on expanding the economy to counteract cyclical downturns. Expansionary policies can be used through monetary policy to expand the money supply or to increase government expending and tax cuts to stimulate the economy. Under this scenario, interest rates are lower and aggregate demand increases. In that case, employment, output, and price level will be higher. Though, the latter is dangerous since it could lead to high inflation.
The purpose why the person use the money is for medium of exchange.
<h3>What is money?</h3>
Money is a legal tender, approved by the government of a country as a means of exchange. Money is used to pay for services received and also for the purchase of goods.
Characteristics of money are:
- Store of value
- Medium of exchange
- Unit of account
Hence, the purpose why the person use the money is for medium of exchange.
Learn more about money here: brainly.com/question/1812645
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Answer:
The maximum investment is $6,360.111
Explanation:
Giving the following information:
The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500.
We need to find the net present value. The maximum initial investment will be the amount that makes the NPV cero.
NPV=∑[Cf/(1+i)^n]
Cf= cash flow
<u>For example:</u>
Year 1= 500/1.05= 476.19
Year 3= 500/1.05^3= 431.92
Year 5= 1,000/1.05^5= 783.53
NPV= 6,360.111
The maximum investment is $6,360.111