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Svetach [21]
2 years ago
10

What are the results of contractionary monetary policy, which intends to slow down the economy, and what are not

Business
1 answer:
geniusboy [140]2 years ago
8 0

The following are results of contractionary monetary policy:

  • raises interest rate
  • increases investment spending
  • reduces money supply

The following are not results of contractionary monetary policy:

  • increases real GDP in the short run
  • increases consumer spending
  • increases aggregate demand in the short run

<h3>What is a contractionary monetary policy?</h3>

Monetary policy are policies taken by the central bank of a country to shift aggregate demand and / or change the money supply in the economy.

There are two types of monetary policy :

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. Reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy

Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy

To learn more about monetary policy, please check: brainly.com/question/3817564

#SPJ1

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What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (a) $44;
gayaneshka [121]

Suppose that Intel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.

What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to (a) $44; (b) $40; (c) $36?

Answer:

Initial worth of brokerage account = 500 × $40 = $20,000

a). if the price changes to $44, then:

worth of brokerage account becomes = 500 × $44 = $22,000

∴ percentage increase = (22,000 - 20,000) / 20,000 = 10% increase.

b). if the price changes to $40, then:

worth of brokerage account becomes = 500 × $40 = $20,000

∴ percentage increase = (20,000 - 20,000) / 20,000 = 0 or no increase.

c). if the price changes to $36, then:

worth of brokerage account becomes = 500 × $36 = $18,000

∴ percentage increase = (18,000 - 20,000) / 20,000 = 10% decrease

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Candice bought a shipment of jeans to sell at her store for $20 each. She'd
rusak2 [61]

Answer:

D. $28

Explanation:

Given the following data;

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To find the selling price;

Markup price = 40/100 * 20

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Markup price = $8

Next, we would add the markup to the cost price;

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