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2 years ago

In what ways might monetary policy be superior to fiscal policy?

1 answer:

6 0

Monetary policy does not require congressional approval, it is more flexible than fiscal policy. Conversely, monetary policy has a propensity to increase inflation more than fiscal policy.

A country's central bank uses a set of instruments called monetary policy to regulate the total amount of money in circulation, foster economic expansion, and implement measures like adjusting interest rates and altering bank reserve requirements.

The Federal Reserve Bank of the United States carries out a monetary policy under a twin mandate to maximise employment while containing inflation.

A nation's overall money supply is managed by monetary policy, which also aims to promote economic growth.

Interest rate changes and adjustments to bank reserve requirements are examples of monetary policy strategies.

Learn more about monetary policy here:

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The chart attached shows the costs and shipping times for materials that a company needs to build a new product.

Volgvan

D. Even though the shipping time is longer, they should order the imported materials because they are less expensive and should arrive in plenty of time to build the product.

They have two years to build the product. They should go with low cost to save for unforseen complications, like unexpected increase in assembly price.

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3 years ago

Read 2 more answers

A proposed new project has projected sales of $219,000, costs of $96,000, and depreciation of $26,000. The tax rate is 23 percen

zloy xaker [14]

Answer and Explanation:

The computation of the operating cash flow using the four different approaches is shown below:

1. EBIT + depreciation - taxes approach

But before that the net income would be

Sales $219,000

Less cost -$96,000

Less depreciation -$26,000

EBT $97,000

Less tax at 23% -$22,310

Net income $74,690

Now the operating cash flow is

= EBIT + depreciation - taxes

= $97,000 $26,000 - $22,310

= $100,690

2. top down approach

= Sales - cost - taxes

= $219,000 - $96,000 - $22,310

= $100,690

3. Tax shield approach

= (Sales - cost) × (1 - tax rate) + tax rate × depreciation expense

= ($219,000 - $96,000) × 0.23 + 0.23 × $26,000

= $94,710 + $5,980

= $100,690

4. Bottom up approach

= Net income + depreciation

= $74,690 + $26,000

= $100,690

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3 years ago

A data custodian works directly with data owners and is responsible for the storage, maintenance, and protection of the informat

elena-s [515]

Answer:

The statement is: True.

Explanation:

A data custodian is responsible for storing and give proper use to specific types of information. This character appears at the governance level of safe-keeping data. Typically, the information the custodian guards is related to businesses and general IT (Information Technology).

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4 years ago

involves a _ involves a binding contractual agreement between a firm and another firm or individual whereby the business name an

Nimfa-mama [501]

Answer:

Franchising

Explanation:

In Franchising, a company who already has a successfully established brand give other people with the ability to open new branch by using that brand.

Example for this would be McDonald. McDonald operate under a franchising system, in which a person who have enough capital to provide building can pay a certain amount money to McDonald in exchange for permission to use its brand.

In most franchising system, the Franchiser usually impose a strict regulation regarding the format of the business. They do this in order to maintain the reputation of the brand.

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4 years ago

The annual benefits of $4000 every year for three years may be obtained for an investment on a production equipment costing $20,

vodomira [7]

Answer:

The right equation to determine the NPW is:

= B) NPW = -20000 + 4000(P/A,6%,3) + 5000(P/F,6%,3)

Explanation:

a) Data:

Present value cost of production equipment = $20,000

Annual benefits = $4,000

Period of useful life = 3 years

MARR = 6%

Salvage value = $5,000

Present Value Annuity Factor for annual benefits for 3 years at 6% = 2.673

Present Value Factor for Salvage Value after 3 years at 6% = 0.840

Present Value Factor for the initial cost of investment = 1

Therefore, to obtain the NPW of the investment, the correct equation is:

B) NPW = -20000 + 4000(P/A,6%,3) + 5000(P/F,6%,3)

where NPW = Net Present Worth

P/A = Present Value Annuity Factor

P/F = Present Value Discount Factor

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3 years ago