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2 years ago

If the federal reserve overstimulates the economy by increasing money growth too much, then inflation will?

1 answer:

5 0

If the federal reserve overstimulates the economy by increasing money growth too much, then inflation will create arbitrary redistributions of wealth.

Income and wealth redistribution refers to the transfer of income and wealth (including tangible property) from some people to others by a social mechanism such taxation, welfare, public assistance, land reform, monetary policy, confiscation, divorce, or tort law. Rather than redistribution between particular people, the word often refers to distribution over the entire economy.

Individual viewpoints, political agendas, and the selective use of statistics all influence how the word is understood. It is widely used in politics to describe the perception of wealth redistribution from those with more to those with less.

Rarely, however, is the phrase used to refer to laws or practices that force redistribution to go from the poor to the rich.

Learn more about redistribution here

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Why would a free market never operate at a quantity greater than the equilibrium quantity? Hint: What would be required for a tr

Volgvan

Answer:

This is because in a free market, the prices of goods and services are determined by market forces, and the price mechanism will always keep the market at equilibrium.

Explanation:

The free market is a market without government intervention, equilibrium price and quantity are determined by the interaction of the market forces, also called price mechanism , which Adams Smith referred to as the invisible hands in the market.

The free market cannot operate outside the equilibrium because, the market forces will always keep the market towards equilibrium. Even if equilibrium is distorted, as a result of any shock, the market forces will bring the market towards equilibrium all things being equal, except there is market failure.

a free market is a market in which prices of goods and services are set by demand and supply and are allowed to reach their point of equilibrium without government intervention

3 0

4 years ago

Knox, president of Quick Corp., contracted with Tine Office Supplies, Inc., to supply Quick’s stationery on customary terms and

andreev551 [17]

Answer:

Explanation:

Based on the scenario being described within the question it can be said that the Quick’s contract with Tine is valid because the contract is fair to Quick. Therefore, the fact that Knox is a majority shareholder in Tine does not complicate the deal. If the deal was made to be more fair to Tine then this information can cause a complication, and even make the contract void.

4 0

3 years ago

Bradshaw Inc. is contemplating a capital investment of $88,000. The cash flows over the project’s four years are: Col1 Expected

tresset_1 [31]

Answer:

Net cashflow = Cash inflow - Cash outflow

Year 1 Net cashflow = $30,000 - $12,000 = $18,000

Year 2 Net cashflow = $45,000 - $20,000 = $25,000

Year 3 Net cashflow = $60,000 - $25,000 = $35,000

Year 4 Net cashflow = $50,000 - $20,000 = $20,000

PAYBACK PERIOD

Year Cashflow Cummulative cashflow

0 (88,000) (88,000)

1 18,000 (70,000)

2 25,000 (45,000)

3 35,000 (10,000)

4 20,000 10,000

Payback period = 3 + 10,000/20,000

Payback period = 3.5 years

The correct answer is B

Explanation:

In this question, there is need to determine the annual net cashflow, which is the the difference between annual cash inflow and annual cash outflow. The payback period is calculated by deducting the initial outlay from the annual net cashflow.

7 0

3 years ago

Which of the following is an advantage of a sole proprietorship?

Y_Kistochka [10]

Some of the advantages of sole proprietorship
1. efficient decision making, by owner only
2. easy to set up, minimal cost, minimal fuss
3. low fixed cost (overhead), could be a home-office

I might have missed others, you could figure them out from the options

4 0

3 years ago

Carrying and using a high-end credit card like an American Express Centurion Card would satisfy needs at what level in the Maslo

ioda

Answer:

Carrying and using a high-end credit card like an American Express Centurion Card would satisfy needs at what level in the Maslow hierarchy of needs?

Esteem level.

Explanation:

Maslow hierarchy of needs is a theory in psychology that comprises five levels of needs that are represented in a pyramid. The needs that are lower in the pyramid are fundamental needs that have to be satisfied before the needs in the higher levels can be satisfied. The needs lower down in the pyramid are mostly physical needs like food, shelter and finances while the needs higher up in the pyramid tend to focus more in improving the quality of life of a person. They include things like; safety, love, physiological needs and self actualization.

The needs in a five-stage model can be categorized into two groups; deficiency needs and growth needs. The first four levels from the bottom can be referred to as deficiency needs while the top most level is defined as a growth need. Deficiency needs are needs that arise due to deprivation while growth needs don't come from a lack of something but a strong desire to become better. The five categories of needs are; physiological, safety, love and belonging, esteem and self actualization.

In our case, someone carrying a high-end credit card is someone who does that out of prestige and thus is most likely in the esteem level in the Maslow hierarchy.

5 0

4 years ago