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1 year ago

Expansion of the money supply during a recession, according to the keynesians, will?

1 answer:

3 0

According to the Keynesian approach an increase in the money supply increases real GDP by lowering interest rates which increases investment.

The Keynesian theory implied that during a recession inflationary pressures are low, but when the level of output is at or even pushing beyond potential gross domestic product, or GDP, the economy is at greater risk for inflation.

Keynesians do believe in an indirect link between the money supply and real GDP. They believe that expansionary monetary policy increases the supply of loanable funds available through the banking system, causing interest rates to fall.

Learn more about Keynesian here

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Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:

joja [24]

Answer & Explanation:

Account Type of Account Increase side

Supplies Asset Debit

Retained Earnings Capital Credit

Fees Earned Revenue Credit

Accounts Payable Liability Credit

Salary Expense Debit

Common Stock Asset Debit

Account Receivable Asset Debit

Equipment Asset Debit

Notes Payable Liability Credit

8 0

3 years ago

Which legal form of business ownership does the government have the most control in?

kirill115 [55]

Answer:

i am not sure for the first one, but for the second its a corporation

Explanation:

there are a lot of regulations connected with corporations and the taxation of these organizations

5 0

3 years ago

Read 2 more answers

If the owner of a company withdrew 200 during a period the closing entry for the owner withdrew account would show a

erastovalidia [21]

Answer:

Explanation:

4 0

3 years ago

Sản phẩm hữu hình và sản phẩm vô hình khác biệt như thế nào?

mr Goodwill [35]

Tài sản hữu hình là bất cứ thứ gì có thể nhìn thấy và hiện diện vật chất như tiền mặt, tài sản, nhà máy và máy móc hoặc các khoản đầu tư. Mặt khác, tài sản vô hình là những thứ không thể nhìn thấy được như lợi thế thương mại của công ty, nhãn hiệu và quyền sở hữu trí tuệ.

Stop your reminding me of vietcong

8 0

3 years ago

The market risk premium is computed by: adding the risk-free rate of return to the inflation rate. adding the risk-free rate of

OverLord2011 [107]

Answer:

subtracting the risk-free rate of return from the market rate of return

Explanation:

Market risk premium is the premium over the risk free rate that investors demand for holding a risky asset

Market risk premium = market rate of return - risk free rate

the higher the risk premium, the higher the return investors are demanding and the riskier the investment

for example if risk free rate is 5% , market rate of return in industry A is 10% while in industry B it is 20%

Market premium in A = 10% - 5% = 5%

Market premium in b = 20% - 5% = 15%

3 0

3 years ago