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n200080 [17]
3 years ago
12

How does the Federal Reserve reduce the money supply in the economy?

Business
2 answers:
IrinaVladis [17]3 years ago
8 0

Answer:

Contractionary; Reserve ratio

Explanation:

If Fed wants to reduce the money supply in an economy then it must follow the contractionary monetary policy and it increases the reserve ratio.

Increase in the reserve ratio will lead to increase the amount of cash that banks are required to hold with Fed and with itself. And, this will also reduce the lending capability of the banks, so less amount of money would be used for giving loans which reduces the money supply in an economy.

Anni [7]3 years ago
3 0

Answer:

Using Contractionary monetary policy, the federal reserve increases Interest Rates to reduce the money supply in the economy​.

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During its first and second years of operations, Rogers Company, a corporation using a periodic inventory system, made undiscove
elena-s [515]

Answer:

Net Income understated by $20,000

Explanation:

In the first year, closing inventory was overstated by $80,000. The implications of the above would be,

Net Income for the first year would be overstated by $80,000

In the Second year,

Opening Stock would be overstated by $80,000

Due to this, cost of production stands overstated by $80,000.

Now, given in the question that closing stock for second year is overstated by $60,000 i.e profits are overstated by $60,000.

This means, the net effect on profits would be, $80,000 less $60,000 i.e $20,000 understated profits for the second year.  

4 0
3 years ago
Barclay Bikes manufactures and sells three distinct styles of bicycles: the Youth model sells for $420 and has a unit contributi
sergey [27]

Answer:

the  firm's contribution margin per composite unit is $8,775

Explanation:

The computation of the firm's contribution margin per composite unit is given below:

= $165 × 5 + $510 × 9 + $560 × 6

= $825 + $4,590 + $3,360

= $8,775

Hence, the  firm's contribution margin per composite unit is $8,775

Therefore the same is to be considered and relevant

7 0
3 years ago
When the ace hardware store located in franklin mails an advertising flyer to all the residents in the community, it is an examp
densk [106]
This could be either print media or support media. I believe it is print media.
7 0
3 years ago
A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be
dybincka [34]

<u>Solution:</u>

The price per variable unit is set at 1.5 times the cost; the VC / unit is estimated at $2.50.

Price = 2.5 * 2.50 = $6.25

Variable cost = $2.50

Fixed cost = $220,000

Break-Even Volume = Fixed cost / (Price - Variable cost)

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Break-Even Volume = 58,667 units

4 0
3 years ago
Rules that prevent the creation and behavior of are called antitrust laws.
iVinArrow [24]
To prevent monopolies. The law was also created to make competition in the market place.
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3 years ago
Read 2 more answers
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