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1 year ago

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

Business

1 answer:

geniusboy [140]1 year 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

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During May, Bergan Company incurred factory overhead costs as follows: indirect materials, $8,800; indirect labor, $6,600; utili

Klio2033 [76]

Answer:

Dr Factory Overhead $29,200

Cr Materials 8800

Cr Wages payable 6600 Cr Utilities Payable 4800

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Explanation:

Preparation of the entry to record the factory overhead incurred during May.

Dr Factory Overhead $29,200

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3 years ago

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Answer:

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2 years ago

Many places of business will not take a check, but will take a credit card. True or False

luda_lava [24]

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3 years ago

Target Profit Outdoors Company sells a product for $110 per unit. The variable cost is $65 per unit, and fixed costs are $288,00

STatiana [176]

Answer:

Results are below.

Explanation:

Giving the following information:

Target Profit Outdoors Company sells a product for $110 per unit. The variable cost is $65 per unit, and fixed costs are $288,000.

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 288,000 / (110 - 65)

Break-even point in units= 6,400

<u>Now, we incorporate the desired profit in the formula:</u>

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3 years ago

Why must a signature card be filled out and signed to open a checking account?

Viefleur [7K]

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3 years ago