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ratelena [41]
2 years ago
8

g Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP,

unemployment, and inflation
Business
1 answer:
satela [25.4K]2 years ago
8 0

Expansionary monetary policy shifts AD to the right.

<h3>What is Expansionary monetary policy?</h3>
  • Expansionary policy, often known as loose monetary policy, expands the availability of money and credit in order to stimulate economic growth.
  • During difficult economic circumstances, a central bank may use expansionary monetary policy to reduce unemployment and stimulate growth.
<h3>Impacts on GDP, unemployment, and inflation by the increase of supply of money:</h3>
  • The Federal Reserve begins to grow the money supply at an increasing rate.
  • The impact on GDP, unemployment, and inflation would be significant.
  • AD is shifted to the right by expansionary monetary policy.

Therefore, expansionary monetary policy shifts AD to the right.

Know more about Expansionary monetary policy here:

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Which of the following entries would be recorded by a company that uses the cash basis method of​ accounting? A. Salaries Expens
liubo4ka [24]

Answer:

B is the correct option, because it indicates that rent expense was only recognized in the books of account when paid for in cash.

Explanation:

Cash basis of accounting simply implies that an organization that adopts it recognizes income when received and expense when paid for in cash.

The above is different from accrual basis,where income is recognized when earned(when obligation is discharged by the seller) and expense when incurred(when the goods involved or services have been received)

All other options except B have something to do with payment on account,hence they are wrong.

6 0
3 years ago
Who is responsible for fiscal​ policy?
TiliK225 [7]

Answer:

C. The federal government controls fiscal policy. 

Explanation:

Fiscal policy are policies enacted by the government using its spending or taxes to stabilise the economy. There are two types of fiscal policy, expansionary and contractionary fiscal policy.

1. Expansionary fiscal policy is a policy that increases the money supply in an economy. They include :

A. Reduction of taxes - this increases disposable income and increases consumer spending which increases money supply.

B. Increased government spending- this is when government increases its spending usually on public projects.

2. Contractionary fiscal policy are policies that reduces the money supply in an economy. They include:

A. Increase in taxes- an increased tax reduces disposable income and money supply in an economy.

B. Reduced government spending - reduced government spending reduces money supply.

Monetary policy is policy controlled by the Federal Reserve.

I hope my answer helps you.

3 0
3 years ago
Indiana Co. began a construction project in 2021 with a contract price of $163 million to be received when the project is comple
iragen [17]

Answer: Recognized $12.68 million gross profit on the project in 2022

Explanation:

Firstly we would need to ascertain the percentage of completion in 2022. We will do this by using the costs.

The cost incurred till date is,

= $32 million (incurred in 2021) + $59 million (incurred in 2022)

= $91 million. (1)

A further $37 million is estimated to remain in costs by project completion so the total cost would be,

= $91 million + 37 million

= $128 million is the total cost to be incurred. (2)

Dividing (1) by (2) to find out how much costs have been incurred vs how much is life we have,

= 91 / 128

= 0.7109

= 71 %

71 % of the project has been completed.

We will now find out the revenue for that very year using the percentage of the project completed.

The Total Revenue is $163 million so we will take 71% of that,

= 0.71(163)

= $115.73 million can be recognized as revenue TILL DATE. (3)

To find out the Revenue for the year then we can deduct the revenue of the previous year from the Revenue till date to find out the revenue for 2022.

But first we need to find the revenue of 2021 using the same method we used to calculate the Revenue this far

= 32 million / (32 + 86 million) * 163 million

= $44.01 million in revenue in 2021 (4)

Subtracting (4) from (3) to get the revenue for 2022 we have,

= 115.73 - 44.01

= $71.72 million is therefore the revenue for the year 2022

Calculating the gross profit for the year 2022 then we can subtract the cost in 2022 from the revenue for 2022.

= 71.72 million - 59 million

= $12.72 million

The answer we got is off by $0.04 from option C so we will pick Option C as the correct answer with the discrepancy going down to rounding off errors in the Intermediate Calculation.

8 0
3 years ago
Your client, beth, has a home in california with a first and second mortgage. she's looking for a vacation home and has asked if
slega [8]

If my client Beth has a home in California with a first and second mortgage and is looking for a vacation home and asks if she can deduct mortgage interest, I would suggest obtaining a mortgage secured by the second home and deducting the interest from the loan.

Mortgage interest settled on a second home used personally is deductible as long as the mortgage fulfills the exact prerequisites for deductible interest as on your primary home, and if the second home is put on for rent, the loan taken for the second home will not have a limit for the deduction of interest payment.

Vacation Home with Second house mortgage

brainly.com/question/28240585

#SPJ4

4 0
2 years ago
What is the main difference between a stock and a bond?
baherus [9]

A bond is a debt instrument. The company or government issuing it borrows your money and pays you a fixed amount of money for the use of the loan you have made available to the company or government. The selling price is usually what the face value of the bond is, but this can vary according to interest rates determined by the Federal Reserve.

A stock is ownership. You own a fraction of the company you've invested in. Sometimes a company pays a dividend. That means that the company has excess funds and decides to pay its shareholders a fraction of what the company brings in.  When you buy a stock, you expect to sell it at a higher price than what you bought it at. That's called a capital gain. It's another source of income.

5 0
3 years ago
Read 2 more answers
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