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Computers Are a Complement to Computer Software

question 9

Essay

Computers are a complement to computer software. Suppose the price of a computer falls. How does this fall in price affect the demand for computer software and the demand curve for computer software?


Definitions:

Reserve Requirement

The lowest level of reserves that financial institutions are required to maintain against deposits, determined by central banks to manage the amount of money in circulation.

Fed

In the United States, the Federal Reserve System serves as the central banking authority, charged with the management of monetary policy.

Bonds

Fixed-income investments representing a loan made by an investor to a borrower, often used by companies, municipalities, states, and sovereign governments to finance projects and operations.

Leverage Ratio

A financial metric used to assess a company's ability to meet its financial obligations, calculated as the ratio of its total debt to its equity, assets, or other benchmarks.

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