Answer:
Reserves fall by $2 million, and the monetary base falls by $2 million.
Explanation:
In the books of First National Bank, the purchase of $2 million of bonds by First National Bank, from the Federal Reserve means there is a reserve with the Federal Reserve represented by security which stands as asset.
In the books of the Federal Reserve, The sales of bonds to First National Bank will create a liability from the reserve assets.
See attached for the T-accounts explain the answer
Procyclical fiscal policies, like those of many US state and local governments, have the tendency to make recessions or inflation worse.
In order to affect economic conditions, particularly macroeconomic recessions conditions, fiscal policy refers to the use of government spending and fiscal policies tax policies. These include employment, the total demand for goods and services, inflation, and economic expansion.
In order to boost demand and stimulate the economy during a recession, the government may reduce tax rates or increase spending. As an fiscal policies alternative, it might increase rates or reduce spending to slow down the economy and fight inflation.
Comparing fiscal policy to monetary policy, which is implemented by recessions central bankers rather than elected government officials, is common practice.
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Answer:
$47,500
Explanation:
The computation of the dollars amount for meeting the obligation is shown below:
= Expected amount to pay × forward rate
= 5,000,000 × $0.0095
= $47,500
We simply multiply the Expected amount to pay with the forward rate so that the accurate amount can come.
All other information which is given is not relevant. Hence, ignored it
Answer: c. $1.1964
Explanation:
The Expected Rate is calculated as follows,
Expected Rate = ((1+ Australia inflation rate)/(1+ U.S inflation rate)) *spot rate
Plugging in the figures therefore we will have,
Expected Rate = ((1+0.033) / (1 + 0.028)) * 1.1904
Expected Rate = $1.1964
$1.1964 is the expected exchange rate one year from now if relative purchasing power parity exists.
The framers were insecure, and they doubted the public's ability to be politically capable and make good choices. They were concerned if the public would be able to come up with good political judgments.
A framer refers to a person, group, or organization that creates or frames laws, rules, plans, and systems of an institution. In the given sentence, the question is about the framers of political laws.
The public is sometimes swayed by the masses and also the media. They do not have the power to analyze and see the truth behind the politics of the rulers. Thus, it might be possible that the public might be swayed by some rulers and fail to make an unbiased judgment.
That is why the framers were concerned about the public's capacity to make good decisions.
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