One of the goals of the federal reserve is price stability. For the Fed to achieve this goal, <span>the rate of inflation should be low, such as 1% to 3%, and should be fairly consistent.
When an organization is wanting to find price stability, they are meaning they want to avoid inflation and deflation. Although it's very hard to have no deflation or inflation, 1-3% is a low number that they are okay with. Inflation is a rise in the price whereas deflation is a decrease in the price.
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Answer:
$840,000
Explanation:
Calculation to determine What is the largest possible total contribution margin that can be realized each period
First step
L =120/10
L= 12
C= 112/8
C= 14
Now let the largest possible total contribution margin
Largest possible total contribution margin C=112*( 60,000/8 )
Largest possible total contribution margin C= 112*7500 units
Largest possible total contribution margin C = $840,000
Therefore the largest possible total contribution margin that can be realized each period is $840,000
Answer:
Process resources.
Explanation:
Assume the process of obtaining a driver's license is considered too long because of too few people who can administer the final driving test. One way to resolve this problem is to hire more people who can give the driving test. This is an example of a change in <u>process resources.</u>
Process resouces: It is a management strategy to resolve operational issue and get smooth work flow in the process by hiring more resources to reduce waiting time and deliver the services as per expectation and on the time. It show the operational efficiency of process.
In the given case, hiring more people to adminster driving test will help in reducing the waiting time of customer and deliver services as per expectation.
In an economy where the money supply and aggregate demand have been decreased by the central bank, you know that the central bank is using a contractionary monetary policy.
In an economy, changes in the money supply leads to changes in aggregate demand. An increase in the money supply increases aggregate demand and a decrease in the money supply decreases aggregate demand.
When a central bank takes action in order to decrease the money supply and increase the interest rate, it is following a contractionary monetary policy. Thus, the central bank requires Southern to hold 10% of deposits as reserves.
Hence, the decrease in the money supply reduces income and raises the interest rate.
To learn more about aggregate demand here:
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<span>Your real income value will increase. The value of your money has now become higher, since deflation is a decrease in the overall money supply. Any income you do have, if it stays the same, will be able to buy more in products than it previously was able to.</span>
