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jeka94
2 years ago
15

If the fed sells $5 billion of u. S. Bonds in the open market and the reserve requirement is 5 percent, m1 will eventually:.

Business
1 answer:
olasank [31]2 years ago
8 0

If the fed sells $5 billion of u. S. Bonds in the open market and the reserve requirement is 5 percent, m1 will eventually decrease by $100 billion.

<h3>What is the effect of the sale of bonds on M1?</h3>

M1 is comprised of the most liquid money supply e.g. currency, demand deposits.  When the Fed sells bonds they are conducting a contractionary monetary policy. The aim of this policy is to reduce the supply of money in the economy.

Reduction in the value of money = value of bonds sold / reserve requirement

$5 billion /0.05 = $100 billion.

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

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Suppose that Italy and Portugal both produce cheese and wine. Italy's opportunity cost of producing a bottle of wine is 2 pounds
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Answer:

The correct answer is letter "A": Neither Italy or New Zealand.

Explanation:

Comparative advantage is the ability of an individual or organization to manufacture its products at a lower opportunity cost than its competitors. The scenario does not imply the individual has an absolute advantage. It actually means it sacrifices less to achieve that goal.

Thus, <em>Portugal has a lower opportunity cost than Italy in producing a bottle of wine. Portugal's opportunity cost is 1/2 while Italy's opportunity cost is 2. Neither Italy or New Zealand (or any other country not mentioned in the example) has a comparative advantage in producing wine</em>.

5 0
4 years ago
The proper order of the following steps in the accounting cycle is prepare unadjusted trial balance, journalize transactions, po
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Answer:

<em>The Accounting Cycle is as follows:</em>

<em>1. Transactions are analyzed and recorded in the journal. </em>

<em>2. Transactions are posted to the ledger.</em>

<em>3. An unadjusted trial balance is prepared. </em>

<em>4. Adjustment data are asssembled and analyzed. </em>

<em>5. An optional end-of-period spreadsheet is prepared. </em>

<em>6. Adjusting entries are journalized and posted to the ledger. </em>

<em>7. An adjusted trial balance is prepared. </em>

<em>8. Financial statements are prepared. </em>

<em>9. Closing entries are journalized and posted to the ledger. </em>

<em>10. A post-closing trial balance is prepared. </em>

<em />

8 0
3 years ago
Moss County Bank agrees to lend the Sandhill Co. $455000 on January 1. Sandhill Co. signs a $455000, 6%, 9-month note. What is t
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Answer and Explanation:

The adjusting entry is as follows

Interest Expense ($455,000 × 6% × 6 months ÷ 12 months) $13,650

         To Interest payable

(Being interest expense is recorded)

here the interest expense is debited as it increased the expenses and credited the interest payable as it also increased the liabilities

The six months is calculated from Jan 1 to June 30

7 0
3 years ago
right-to-work laws stipulate that a person cannot be denied employment because of membership or nonmembership in a labor union o
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It is true that right-to-work laws stipulate that a person cannot be denied employment because of membership or non-membership in a labor union or other labor organization.

The concept of the right to work is that people have a human right to work or engage in productive employment and should not be denied that right. The right to work is recognized in international human rights law through its inclusion in the International Covenant on Economic, Social, and Cultural Rights, where the right to work emphasizes economic, social, and cultural development.

The right to work was also enshrined as a fundamental right of citizens in the Soviet Union's constitution. The Human Rights Measurement Initiative assesses countries' right to work based on their level of income.

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brainly.com/question/14711960

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8 0
2 years ago
Miles graduates from college and his his income increases by ​$ 35 comma 000 35,000 a year. Nothing else changes. Miles Miles de
lubasha [3.4K]

Answer:

hot dogs and pretzels are inferior goods

Explanation:

From the question, We are informed about Miles who graduated from college and his his income increases by ​$ 35000 a year. Nothing else changes. Miles Miles decreases the quantity of hot dogs and pretzels that he buys and increases the quantity of gourmet ice cream that he he buys. For Miles, hot dogs and pretzels are inferior goods. In economics, inferior good can be regarded as goods that have a fall in demand whenever there is increase in consumer income, i.e increase in consumer income will bring decrease to such goods, which is opposite to normal goods.

4 0
3 years ago
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