1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dolphi86 [110]
2 years ago
13

1. Please reflect on how the money multiplier concept can be an important tool of both expansionary as well as contractionary mo

netary policy for any central bank such as the U.S. Federal Reserve Bank?
2. The Federal Reserve Bank lowered the required reserve ratio to 0% across the board in 2020. Explain the potential reasoning behind this lowering to 0% and its intended effect on the economy.
Business
1 answer:
yawa3891 [41]2 years ago
4 0

The money multiplier concept uses  three key actions that is done by the Fed so as they can widen the economy and these includes the use of a decreased discount rate, the buying government securities, and also by lowering reserve ratio.

<h3>What is expansionary and contractionary monetary policy?</h3>

A monetary policy that is known to be that which helps to lowers interest rates and influence borrowing is called an expansionary monetary policy or one can say a loose monetary policy.

Also, a monetary policy that tends to bring up interest rates and lowers borrowing in any economy is known to be a contractionary monetary policy and also called tight monetary policy.

<h3>Thee potential reasoning behind this lowering to 0% and its intended effect on the economy?</h3>

Note that Expansionary monetary policy aims to increases the money supply while  Contractionary monetary policy aims lower the money supply.

Therefore, the use of lower rates of economic growth is one that tens to give more likelihood or chance for the shift to renewable energy. It also leads to more saving, and investing.

Learn more about multiplier concept from

brainly.com/question/8263146

#SPJ1

You might be interested in
Allstar Exposure designs and sells advertising services to small, relatively unknown companies. Last month, Allstar had sales co
Aloiza [94]

Answer: The answer is Net income $180,000

Explanation:

All star Exposure

Monthly income Statement

$ $

Sales. 475,000

Less: Expenses

Sales commission 42,000

Technology cost 71,000

Research & Development cost 140,000

Selling Expenses 12,000

Administrative Expenses 30,000

---------------------

(295,000)

---------------------

Net income. 180,000

-----------------------

The All star income statement has no line item for cost of good sold because cost of good sold is a direct cost incurred by All star Exposure on the goods sold. it does not appear as part of the expenses in the income statement.

5 0
3 years ago
if business owners want to maximize the value of the company, they should invest in projects that have the .
Komok [63]

Answer:

if business owners want to maximize the value of the company, they should invest in projects that have the greatest value added.

6 0
2 years ago
The primary policy tool used by the fed to meet its monetary policy goals is.
Makovka662 [10]

The primary tool used by the Fed to achieve monetary policy goals is <u>Open Market Operations.</u>

<h3>What are Open Market Operations (OMO)?</h3>
  • This refers to the trading of securities by the fed.
  • Securities traded include bills, notes, and bonds.

When the fed wants to increase the money supply, they will buy these securities from the public. If it is a decrease they they seek, they will sell securities to the public.

In conclusion, this is Open Market Operations.

Find out more about Open Market Operations at brainly.com/question/14256204.

5 0
2 years ago
Highway 55 Studios has budgeted the following amounts for its next fiscal​ year: Total fixed expenses $ 1 comma 980 comma 000 Se
faust18 [17]

Answer:

Contribution per unit = Selling price - Unit variable cost

                                     = $70 - $10 = $60

Break-even sales in units = <u>Fixed cost</u>

                                             Contribution per unit

                                         = <u>$1,980,000</u>

                                                   $60

                                        = 33,000 units

If fixed cost reduced by $49,500, new fixed cost will be $1.930,500

33,000     = <u>$1,930,500</u>

                      $70 - VC

33,000(70 - VC) = $1,930,500

2,310,000 - 33,000VC  = $1,930,500

2,310,000 - $1,930,500 = 33,000VC                                          

379,500  = 33,000VC

<u>379,500</u>  = VC

33,000

VC = $11.50

Increase in variable expenses per unit

= $11.50 - $10 = $1.50

Explanation:

In this case, we need to determine the break-even point in units, which is fixed cost divided by variable expenses per unit. If total fixed expenses reduced by $49,500, the new total fixed expenses will be $1,930,500. Then, we will equate the break-even point in units to the new fixed cost divided by contribution per unit, which is selling price minus variable expenses per unit. Since break-even point in units, new fixed cost and selling price were known with the exception of variable cost, variable cost becomes the subject of the formula. The old variable expenses will be deducted from the new variable expenses so as to obtain increase in variable expenses per unit.

7 0
3 years ago
Which of the following statements is correct regarding fair value measurement?
Rashid [163]
Rhxhehxsjxhejdbejfbduf
6 0
3 years ago
Other questions:
  • Ramona owns a small coffee shop, where she works full-time. Her total revenue last year was $100,000, and her rent was $3,000 pe
    15·1 answer
  • Confirmatory value is an ingredient of the primary quality of
    11·2 answers
  • Determine the amount to post to the Cash T-account. Event Debit/Credit Purchase equipment by signing a note with the bank for $2
    5·1 answer
  • What are different types of expenditure and examples of each
    7·1 answer
  • Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1
    11·1 answer
  • Which law is referred to as the credit cardholders Bill Of Rights ?
    6·2 answers
  • Export supply curves are __________________; import demand curves are ___________________.
    5·1 answer
  • Do you want to buy mah flamago milk?
    15·2 answers
  • Joey bought a dozen oranges for $3. 50 and several bananas for $0. 25 each at the grocery store. Joey spent a total of $5. 75 on
    14·1 answer
  • Assess the executive summary of the business plan. This is the part where the company's mission statement and the purpose of the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!