For every $1,000 of annual income, households maintain average cash balances (their demand for money) of $200. how will growth in gdp affect interest rates, holding the money supply constant? use the liquidity preference framework . 1.) using the line drawing tool, show the effect of growth in gdp using the liquidity preference framework. properly label your line. 2.) using the point drawing tool, indicate the new equilibrium interest rate and quantity of money. label the point '2'.

Afirm wants to strengthen its financial position. which of the following actions would increase its current ratio? a. reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment. b. use cash to repurchase some of the company's own stock. c. borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year. d. issue new stock, then use some of the proceeds to purchase additional inventory and hold the remainder as cash. e. use cash to increase inventory holdings.