Business, 23.11.2019 01:31 edailey7230
Let’s use the model of the supply and demand for bank reserves to explain how the federal reserve can change aggregate demand in the short run. remember that the federal reserve controls the supply of bank reserves, but private banks create demand for bank reserves.
a. after a meeting, the federal reserve’s open market committee votes to cut interest rates from 2% to 1.5%. how will they make this happen: will they increase the supply of reserves or decrease the supply?
b. as a result of your answer to part a, will banks usually lend more money in response, or will they lend less money? will this tend to increase the nation’s money supply, lower it, or will it have no net effect on the money supply?
c. will this typically increase aggregate demand or lower it?
Answers: 3
Business, 21.06.2019 20:30
Agood for which demand increases as income rises is and a good for which demand increases as income falls is
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Business, 21.06.2019 22:20
Amachine purchased three years ago for $720,000 has a current book value using straight-line depreciation of $400,000: its operating expenses are $60,000 per year. a replacement machine would cost $480,000, have a useful life of nine years, and would require $26,000 per year in operating expenses. it has an expected salvage value of $130,000 after nine years. the current disposal value of the old machine is $170,000: if it is kept 9 more years, its residual value would be $20,000. calculate the total costs in keeping the old machine and purchase a new machine. should the old machine be replaced?
Answers: 2
Business, 22.06.2019 06:40
At april 1, 2019, the food and drug administration is in the process of investigating allegations of false marketing claims by hulkly muscle supplements. the fda has not yet proposed a penalty assessment. hulkly’s fiscal year ends on december 31, 2018. the company’s financial statements are issued in april 2019. required: for each of the following scenarios, determine the appropriate way to report the situation. 1. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 2. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is probable. 3. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 4. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is probable.
Answers: 1
Business, 22.06.2019 10:10
An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?
Answers: 3
Let’s use the model of the supply and demand for bank reserves to explain how the federal reserve ca...
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