Table of Contents
What are the factors affecting money supply?
Determinants of Money Supply:
- The Required Reserve Ratio: The required reserve ratio (or the minimum cash reserve ratio or the reserve deposit ratio) is an important determinant of the money supply.
- The Level of Bank Reserves:
- Public’s Desire to Hold Currency and Deposits:
- Other Factors:
What are the factors affecting demand?
Factors Affecting Demand
- Price of the Product.
- The Consumer’s Income.
- The Price of Related Goods.
- The Tastes and Preferences of Consumers.
- The Consumer’s Expectations.
- The Number of Consumers in the Market.
What are the 6 factors that affect demand?
6 Important Factors That Influence the Demand of Goods
- Tastes and Preferences of the Consumers: ADVERTISEMENTS:
- Income of the People:
- Changes in Prices of the Related Goods:
- Advertisement Expenditure:
- The Number of Consumers in the Market:
- Consumers’ Expectations with Regard to Future Prices:
What are the 7 determinants of supply?
Terms in this set (7)
- Cost of inputs. Cost of supplies needed to produce a good.
- Productivity. Amount of work done or goods produced.
- Technology. Addition of technology will increase production and supply.
- Number of sellers.
- Taxes and subsidies.
- Government regulations.
- Expectations.
What are the 7 factors that cause a change in supply?
The seven factors which affect the changes of supply are as follows: (i) Natural Conditions (ii) Technical Progress (iii) Change in Factor Prices (iv) Transport Improvements (v) Calamities (vi) Monopolies (vii) Fiscal Policy.
How does supply and demand affect consumers?
It’s a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise. While the initial demand may be high, due to the company hyping and creating buzz for the car, most consumers are not willing to spend $200,000 for an auto.
What are the 8 factors of supply?
Some of the factors that influence the supply of a product are described as follows:
- i. Price:
- ii. Cost of Production:
- iii. Natural Conditions:
- iv. Technology:
- v. Transport Conditions:
- vi. Factor Prices and their Availability:
- vii. Government’s Policies:
- viii. Prices of Related Goods:
What are 5 factors that affect demand?
Demand Equation or Function. It says that the quantity demanded of a product is a function of five factors: price, income of the buyer , the price of related goods, the tastes of the consumer, and any expectation the consumer has of future supply, prices, etc.
What are the determinants of money demand?
12.Three most important determinants of money demand are: a. family size, age, and population b. income, consumption , and saving c. price level, income, and interest d. education, gender, and location 13.
What does the demand for money factor of inflation mean?
If we have inflation, goods become more expensive, so the demand for money rises. Interestingly enough, the level of money holdings tends to rise at the same rate as prices. So while the nominal demand for money rises, the real demand stays precisely the same.
What affects the demand curve?
The points along the demand curve show how the quantity demanded depends on the price of the goods. Since price will always have a negative effect on consumer demand, all demand curves will have a downward slope. A shift or change in the slope of the curve due to influential factors other than price is called a “change in demand.”.