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NISA [10]
1 year ago
8

PLEASE HELP THERE ARE TWO SCENARIOS

Business
1 answer:
rosijanka [135]1 year ago
6 0

It is correct to state that the Fed will address the scenario with expansionary policy.

<h3>What is an expansionary policy?</h3>

An expansionary policy is one that seeks to increase the amount of money  so that aggregate demand can be stimulated.

<h3>What is a specific monetary action the Fed might use in this scenario? Identify the tool and how the Fed would use it. Explain how this would address the scenario.</h3>

When money is injected into the economy using tools such as

  • Lower interest rates
  • Lower Bank Reserves etc., demand is stimulated.

<h3>What is a specific fiscal action that Congress might use in this scenario?</h3>

Examples of fiscal polices that the congress might enlist for deployment in this scenarios are:

  • Government spending; and
  • Tax regulation.

To increase aggregate demand, Government will inject more money in to the economy by buying back bonds or embarking on projects at the state and local levels.

Reduction of taxes will also help put more money in the hands of people, thus increasing aggregate demand.

Learn more about expansionary policies:
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#SPJ1

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g An investor wants to be able to buy 4% more goods and services in the future in order to induce her to invest today. During th
Hitman42 [59]

Answer: a. I, II and III are true

Explanation:

From the question, the statements that are true are:

I. 4% is the desired real rate of interest. II. 6% is the approximate nominal rate of interest required.

III. 2% is the expected inflation rate over the period.

4% is the desired real rate of interest because that's the rate at which the investor is willing to buy the goods in future.

2% is the expected inflation rate over the period because at that rate, there's expectation of future rise in price while 6% is the approximate nominal rate of interest required which is the addition of the 4% and the 2%.

7 0
3 years ago
Substitution and income effects of a change in price of a good may be used to explain the:
kodGreya [7K]

Answer: Option A  

   

Explanation: In simple words, substitution effect refers to the economic phenomenon which states that when price of one good rises the demand for the alternative of that particular good also rises. For example - coke and pepsi.

On the other hand, income effect states that when the price of a commodity rises, a number of consumers might find it hard to purchase due to the price exceeding their income power which further results in lower demand.

Hence from the above we can conclude that the correct option is A.

6 0
3 years ago
Emily works in the stockroom at a retail store for $10/hour on Saturdays. The store is within near walking distance of her home.
frosja888 [35]

Answer:

Correct options

A.) the $4 in direct costs she would spend to drive to and from her babysitting job:

Emily will have to spend $2 to and $2 on gas for the babysitting job. She will have to consider if she can bear the additional cost compared to the other job opportunity.

B.) the opportunity costs of not working at the store on a Saturday when she babysits:

When Emily is babysitting she has to consider the opportunity cost of working at the retail store. The fact the she will not have to drive to work, instead working at a place close to her home.

Incorrect option

C.) the cost of clothes and personal items (e.g., phone) Emily uses during babysitting:

On both jobs Emily will incur cost of clothing and other personal items, so this is not a cost she should be considering in making a decision between the two jobs.

4 0
2 years ago
Elizabeth recently purchased 115 shares of a company for $10350 ($90 per share). The company has been doing well. This year, she
Fed [463]

Answer:

$90

Explanation:

Option B is wrong because $1,035 is the dividend received from the company by Elizabeth.

Option C is wrong because $270 is the current market price of each share.

Option D is incorrect because $10,350 is the common stock value of 115 shares.

Option A is correct because $90 is Elizabeth's per-share basis in the company for which she received a dividend. Share's price increased to $270 after success.

7 0
2 years ago
What can you do to figure out how much you can afford when buying a car?
GuDViN [60]
You can check your credit and you can us it for the car u want ,

5 0
3 years ago
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