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1 year ago

the fed took action in late 2008 to significantly decrease the federal funds rate. this action is best considered:

1 answer:

5 0

At the end of 2008, the Fed took action to significantly lower the federal funds rate.The best way to describe this action is as offensive.

Quantitative facilitating is a strategy when a national bank endeavors to invigorate the economy by purchasing long haul protections.The Fed wanted to lower the interest rates on 10-year Treasury notes and mortgages.

In response to the Great Recession, what actions did the Federal Reserve take?

To lower interest rates, it bought on the open market.

The Federal Funds Rate—also known as the Federal Funds Target Rate or the Fed Funds Rate—is set by the Federal Open Markets Committee (FOMC) to direct overnight lending among U.S. banks.It is established as a range between two limits.Currently, the federal funds rate is 3.75 percent to 4%.

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What term defines the prescribed forms and practices of appropriate behavior?.

Anastaziya [24]

The term that defines the prescribed forms and practices of appropriate behavior is called etiquette.

<h3>What is etiquette?</h3>

Etiquette are behavior expected to be complied with people. It means acceptable standard of behavior in the society.

Hence, the term that defines the prescribed forms and practices of appropriate behavior is called etiquette.

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4 0

1 year ago

A country produces only bananas and robots. If it produced only bananas with all its available resources, it could make 60 milli

Levart [38]

It should be noted that in the PPC, the downward sloping line 'ab' is the production possibility curve.

<h3>How to illustrate the information?</h3>

In the diagram, since point 'A' falls on the PPC itself, it represents the full employment of resources. Point 'A' represents the combination of 30 million bananas and 10 million robots.

Opportunity cost producing a robot = Total bananas possible / Total robots possible

Opportunity cost producing a robot =60/20

Opportunity cost producing a robot = 3 bananas

The area outside PPC represents the unattainable combinations of two goods.

During the recession, the resources are inefficiently used and the production combination is represented by point 'B' which falls below PPC When the production technology improves only for one good and not for the other, the PPC rotates

Marginal opportunity cost of a robot = 80 million bananas / 10 million robots

The marginal opportunity cost of a robot = 8 bananas

Opportunity cost of 2 million robots = 8 bananas × 2 million

The opportunity cost of 2 million robots will be 16 million bananas.

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8 0

2 years ago

Table 13-8 quantity of output fixed cost variable cost 0 $20 $0 1 $20 $10 2 $20 $40 3 $20 $80 4 $20 $130 5 $20 $200 6 $20 $300 r

OverLord2011 [107]

the answer is is is
5

4 0

3 years ago

If the rate of inflation remains the same at 2% during the 5-year life of a TIPS bond with a coupon of 3%, what would the nomina

Vaselesa [24]

Answer:

C $1,104

Explanation:

TIPS are the form of bonds which are specially designed for the purpose to protect the investors against the inflation.

The principal value of the bond in case of TIPS is adjusted for yearly inflation.

Based on the above discussion the value of TIPS bond can be calculated using the below formula:

Value of bond at maturity=Principal amount (1+inflation rate)^5

=1,000(1+2%)^5

=1,104

So the answer is C $1,104

4 0

3 years ago

On Monday morning you sell one June T-bond futures contract at 97:27, that is, for $97,843.75. The contract's face value is $100

sergij07 [2.7K]

Answer:

Please find the detailed answer as follows

Explanation:

The case is pretty simple, and I’ll to be simple in explanation below:

Facts:

--Transfer price per unit should be atleast equal to the relevant cost per unit.

--Relevant cost per unit = Variable cost per unit + Contribution margin lost + Avoidable fixed cost.

--Since it is stated that fixed cost wont be affected and that there is idle capacity available, there wont be any ‘Contribution margin lost’ on outside sale AND ‘avoidable fixed cost.

--If Division A transfers, it would transfer at the relevant cost of $ 19 per unit, which is equal to the variable cost per unit.

--If Division A didn’t transfer, Division B will buy from outside at rate of $ 24 per unit.

Hence, Division B will purchase $ 24 per unit when it could get from Division A at $ 19.

Thereby, Division will be paying $ 5 per unit extra on 16100 units.

Division B and hence, the company as a whole will be WORSE by $ 80,500

[16100 units x $ 5 per unit]

Correct Answer = Option #3: Worse off by $ 80,500 each period.

The same is illustrated as attached image.

Download xlsx

7 0

3 years ago