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1 year ago

The purpose of an expansionary monetary policy is to shift the.

Business

1 answer:

love history [14]1 year ago

8 0

The goal of expansionary monetary policy is to push the aggregate demand curve to the right.

<h3>What Exactly Is an Expansionary Policy?</h3>

Expansionary, or loose, the policy is a type of macroeconomic policy that aims to stimulate economic growth. The expansionary policy can take the form of either monetary or fiscal policy (or a combination of the two). It is part of the overarching policy prescription of Keynesian economics to be used during economic slowdowns and recessions to reduce the negative effects of economic cycles.

The purpose of expansionary policy is to stimulate the economy by increasing demand through monetary and fiscal stimulus. The expansionary policy aims to avoid or mitigate economic downturns and recessions.

For more information about Expansionary Policy refer to the link:

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Commercial banks, savings and loan associations, and credit unions Multiple Choice

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Answer:

The correct answer is letter "D": accept deposits and make loans.

Explanation:

Commercial banks are the most common financial institutions there are allowing people have access to<em> deposits, loans, Certificate of Deposits (CDs), mortgages, credit cards, </em>and <em>mutual funds </em>among a wide variety of investment and credit instruments.

At a lower level, savings and loan associations and credit unions offer deposits and loans but the first ones share the money pooled among its members who share profits and credit unions are non-profit entities mainly formed by employees of the same organization.

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2 years ago

Exercise 21.2 you are the dba for the veryfine toy company and create a relation called employees with fields ename, dept, and s

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Check the attached files for the solution.

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3 years ago

Take It All Away has a cost of equity of 10.54 percent, a pretax cost of debt of 5.27 percent, and a tax rate of 35 percent. The

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Answer:

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of common stock x Weightage of common stock ) + ( Cost of preferred stock x Weightage of preferred stock ) + ( Cost of debt ( 1- t) x Weightage of debt )

As WACC is calculated using Market values.

Company Value = 100%

Value of Debt = 28%

Value of Debt = 100% - 28% = 72%

WACC = ( 10.54% x 72% ) + ( 5.27% x 28% )

WACC = 7.59% + 1.48% = 9.07% = 9% (rounded off)

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3 years ago

Precision Aviation had a profit margin of 7.00%, a total assets turnover of 1.4, and an equity multiplier of 1.8. What was the f

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Answer:

17.64%

Explanation:

Precision aviation has a profit margin of 7%

The total assets turnover is 1.4

The equity multiplier is 1.8

Therefore the ROE can be calculated as follows

= Total assets turnover × equity multiplier × profit margin

= 1.4 × 1.8 × 7

= 17.64%

Hence the ROE is 17.64%

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2 years ago

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next seven years, because

umka2103 [35]

Answer:

The price of the stock today will be $66.19

Explanation:

To calculate the price of a stock whose dividends will grow at a constant rate forever is calculated using the constant growth model of dividend discount model approach. To calculate the price of the stock today using this model, we use the following formula,

P0 = D1 / r - g

We will first calculate the price of the stock at t=8 using D9 because we use the next period's dividend to calculate the price of a stock. We will then discount back the price at t=8 to today's price.

P8 = 14.25 * (1+0.06) / (0.14 - 0.06)

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P0 = 188.8125 / (1+0.14)^8

P0 = $66.189 rounded off to $66.19

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2 years ago