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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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Douglas Industries produced 5,500 units of product that required 2.5 standard hours per unit. The standard variable overhead cos
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Answer:

The variable factory overhead controllable variance is $2,250 favorable.

Explanation:

variable factory overhead controllable variance

= standard variable cost - actual variable cost

= $5500-2.5*3 - $39000

= $2,250 favorable

Therefore, The variable factory overhead controllable variance is $2,250 favorable.

8 0
3 years ago
When managers are flexible, creative and willing to learn from mistakes, they are addressing which aspect of emerging public iss
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Managers are handling complexity when they are adaptable, imaginative, and prepared to learn from mistakes.

Describe complexity.

According to the scientific theory of complexity, certain systems exhibit behavioral traits that are utterly outside the scope of any traditional examination of the system's component pieces. These phenomena, also known as emergent behavior, appear to be present in a variety of complex living organism-based systems, such as the stock market and the human brain. For instance, according to complexity theorists, a stock market crash is an emergent result of the activities of several individual investors on a complex financial system, just as human awareness is an emergent characteristic of a complex network of neurons in the brain.

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1 year ago
An index model regression applied to past monthly returns in Ford’s stock price produces the following estimates, which are beli
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Answer:

(1.32%)

Explanation:

The computation of the abnormal change in Ford’s stock price is shown below:

Given that

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= 0.1% + 1.1 × 10.2%

= 0.1% + 11.22%

= 11.32%

And, the stock price rises by 10%

So, now the abnormal change in Ford stock price is

= 10% - 11.32%

= (1.32%)

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3 years ago
Kyle is trying to decide which brand of diapers he should buy for his newborn daughter. each of the brands has its own unique fe
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2 years ago
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a. Open innovation.

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Since Butterfly Technologies source the technology from an external party and it is not a radical innovation (meaning it does not affect the core benefit brought by Butterfly Technologies' product), it is an open innovation.

External knowledge and know-how are used to improve the battery life and speed of their devices.

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