Answer:
B) As long as the Fed's announcement is credible, workers and firms will reduce their consumption and investment spending, which will reduce aggregate demand and reduce inflation.
Explanation:
If the FED announces that it will increase the federal funds rate, it will increase the interest that banks charge other banks for lending them money in order to comply with the reserve ratio. This increase would make banks hand out less loans and be more careful in order to reduce their need for overnight funds.
If banks reduce their loans, their capacity for creating money will also be reduced, lowering the consumption level and investment spending of both workers (households) and private firms.
In order to verify the quality and integrity of completes
visuals, you should NOT ask yourself the question “Is the
visual doing the job?”
<span>One needs to ensure visual and textual
flow in order to have successful integration with text involves for decisions.</span>
Answer:
A. Recent environmental research reveals that the dust from the limestone quarrying site has severely contaminated the water at a nearby lake.
Explanation:
The limestone production results in huge social effects like, noise pollution, soil pollution, which affects lives of people. And since the manufacturers or producers of limestone do not care about the social results of such production, they shall be liable to pay huge taxes.
As for this, the cause as stated in statement A is absolutely suitable.
Also the prices are more in this area even after so much of social destruction.
Accordingly high taxes as a penalty for such social destruction shall be charged.
Answer:
$522,000
Explanation:
The computation of the Kendall Ford's total investment spending in 2018 is shown below:
= Dealership spent + repairing cost + unsold cars and trucks were valued i.e closing cost - unsold cars and trucks were valued i.e opening cost
= $20,000 + $2,000 + $900,000 - $400,000
= $522,000
The $600,000 would be ignored and the rest cost are taken for the computation
<span>If the Fed expands the money supply by $1
trillion, the money market will be (letter C.) the equilibrium interest rate
will fall, and more money will exchanged in equilibrium. It is because people
will have more money to spend. Some would choose to use this money to buy goods
and services while other opt to put their money in banks which may lead to
lower interest rates to persuade people in borrowing. </span>
