Answer:
International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by <u>outflows</u> of foreign funds, the Fed may not feel compelled to use a <u>tight </u>monetary policy.
Explanation:
A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.
Outflows of foreign funds or the flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad.
The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.
Answer:
b. make fewer than 20 wedding cakes per month.
Explanation
Laura sells 20 wedding cakes per month.
Her monthly total revenue is $5,000.
Marginal Revenue = $5000 / 20 cakes = $250
The marginal cost of making a wedding cake is $300.
<em>In order to maximize profits, Laura should make fewer than 20 wedding cakes per month. </em>
<em>The reason is that Laura's marginal cost is higher than her marginal revenue implying that she is spending more on each item than she is gaining. </em>
<em>By reducing one unit of output she will be gaining more revenue.</em>
<em>
Profit Maximization Rule Definition states that if a firm chooses to maximize its profits, it must choose that level of output where Marginal Cost (MC) is equal to Marginal Revenue (MR) and the Marginal Cost curve is rising. i.e. it must produce at a level where MC = MR.
</em>
<em>Hence Laura has to make fewer cakes</em>
Answer:
The correct answer is letter "B": a claim that entitles the owner to future income from the seller.
Explanation:
Financial assets are intangible resources that represent an entity's ownership claim or contractual rights to future payments. Common types of financial assets are cash, stocks, bonds, bank deposits, options, futures contracts, and derivatives. The value of an asset depends on supply and demand and its underlying value.
Answer:
Option (d) is correct.
Explanation:
Given that,
June 1 Beginning inventory 20 units at $19 = $ 380
June 7 Purchases 70 units at $20 = 1,400
June 22 Purchases 10 units at $23 = $230
Cost of goods available for sale = $2,010
On June 30, units on hand = 30 units
Cost of Ending inventory:
= (20 units × $20) + (10 units × $23)
= $400 + $230
= $630
Total cost of goods sold:
= Cost of goods available for sale - Cost of Ending inventory
= $2,010 - $630
= $1,380
