As a member of the Federal Reserve Board, in an inflationary situation I would suggest a change in the federal funds rate that would be accomplished by raising the base interest rate of the US economy. This would make bonds more attractive and people would stop consuming to invest in public debt securities. In addition, raising interest rates would discourage credit, causing banks to lend less. Since inflation is a monetary phenomenon caused by the excess of currency in circulation, these measures would have a downward effect on inflation, as they reduce the amount of money in circulation in the economy.
Answer:
Explanation:
When the Peso depreciates by 30%, the firm can save money on the costs of production as the inputs would be less costly but the market for the firm in Mexico would be affected negatively as the depreciation of the peso would mean that now, the consumer can buy more goods with the same amount of money which will increase the demand. The loans that the subsidiary has taken would also be affected as it has to pay more for the collateral.
If the company reduces the inventory and stock the foreign receivables before the depreciation occurs to minimize the loss. Before the depreciation happens, the firm can convert the pesos denomination to the dollar so that its value doesn't fall.
Answer:
Accounts Payable $3,812 credit
<h3>
Explanation:</h3>
Equipment $4,445 debit,
Cash $633 credit,
now, $4445- $633 = $3,812
The correct entry would be $3,812.
To learn more about it, refer
to brainly.com/question/26106218
#SPJ4
Answer:
The loan applicant would qualify for the mortgage debt ratio in option a because his mortgage debt ratio is 24% and the allowable mortgage debt ratio is 28%.
Explanation:
First, you have to calculate the debt ratio in each case. It is calculated by dividing the total debt by the income.
a. Debt= $600
Income= $2,500
Mortgage debt ratio=600/2,500= 0.24→24%
b. Debt=$600+$250+$75=$925
Income=$2,500
Total Debt ratio=925/2,500= 0.37→37%
The loan applicant would qualify for the mortgage debt ratio because his mortgage debt ratio is 24% and the allowable mortgage debt ratio is 28%. The loan applicant would not qualify for the total debt ratio because his ratio is 37% and the allowable total debt ratio is 36%.
Answer: (D) enter; rightward
Explanation: As new firms enter the market, there is a shift in the supply curve to the right, decrease in market prices and decrease in economic profit.
