Answer:
c. increasing the money supply. To increase the money supply it could buy bonds.
Explanation:
In the case when fed wants to decreased the rate related to the federal funds so here the money supply should be increased also in order to increased the money supply we need to purchased the bonds
Moreover, the increase in money supply should be equivalent to the reduction in the interest rate
Therefore the option c is correct
Answer:
The annual capacity is 85000 units. If order is accepted of 12000 units the company will be able to sell only 73000 units (instead of 78000).
Explanation:
Current Net Income calculation and New Net Income calculation are atteched in the archive.
- Increase in income = new income – old income = 370000 – 340000 = $30000
- Marston’s Net Income will INCREASE by $30,000 if it accepts the special order.
- The above increase can be also understood as---
Contribution gain on special order – 12000 units x ($105-$90) = $180,000
(-) Contribution lost of normal sale – (78000 units – 73000 units) x ($120-$90) = $150000
Net INCREASE = 180000 – 150000 = $30,000
Investment will decline if savings also decline when a government's fiscal policy switches from a budget surplus to a budget deficit and the trade deficit stays steady.
<h3>What occurs if there is a budget surplus or deficit for the government?</h3>
- A budget deficit occurs when the federal government spends more money than it takes in from taxes in a given year.
- In contrast, the government has a budget surplus when it collects more taxes than it spends in a single year.
<h3>What distinguishes a budget surplus from a budget deficit?</h3>
A government experiences a budget surplus when its tax revenues exceed its expenditures, a budget deficit when its expenditures exceed its tax revenues, and a balanced budget when the two figures are equal.
<h3>How do trade deficits result from budget deficits?</h3>
A budget deficit causes interest rates to rise, which raises net capital inflows and currency depreciation, which lowers net exports.
learn more about budget surplus and deficit here
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Answer:
The correct answer is option
Explanation:
A firm operating in a perfectly competitive market is producing 800 units. The marginal cost is $3.50. The minimum average variable cost is $3. The market price is $4.
The firm will be able to maximize its profit at the point where the price of the product is equal to marginal cost and is able to cover the average variable cost of the product.
This firm should thus increase its production to more than 800 units till the marginal cost is equal to the price which is $4.
Answer
Option C. Profit Leverage Effect
Explanation:
Purchasing activities are said to be assignments/tasks buyers have to perform if they want to have or obtain the right products and services at the right price and time from the right vendors.
Profit-Leverage Effect is usually measured by the increase in profit gotten as a result of a decrease in purchase spend
