Answer:
Inflation;National Banking Act ;Panic of 1907
Explanation:
What economic challenge did the newly formed American federal government face? Inflation
Which act created nationally chartered banks and circulated notes backed by the federal government? National Banking Act was pass during the Civil War, it was created so as to provide for nationally chartered banks, whose circulating notes had to be backed by U.S. government
What economic event led to the creation of the Federal Reserve? Panic of 1907 resulted in the creation of Federal Reserve by the Congress due the wreaked havoc on the fragile banking system at that time
Answer:
Opportunity cost of holding the money = $1.650
Explanation:
Opportunity cost is the value of the next best alternative sacrificed in favour of a decision.
The opportunity cost of holding the money is the interest on deposit that would be have been earned should it be invested at the savings rate.
Interest on savings deposit = interest rate × deposit
= 2.5%× 66,000= $1,650
Opportunity cost of holding the money = $1.650
The relationship between planned investment and interest rates is that investment spending is inversely related to interest rates.
<h3>How are investment spending and interest rates related?</h3>
Investment spending depends on being able to take loans from financial institutions to sponsor capital projects.
If interests rate are high, there will be less planned investments because the cost of taking a loan will be high. The relationship is there inverse in nature.
Find out more on interest rates at brainly.com/question/26540958.
Answer:
Let's say that the value of the US dollar goes down due to inflation.
A startup business would have to pay more money to it's employees, spend more money on products, try and charge the same prices, and lose a lot of money. Essentially, more money would be going out than coming in.
Answer:
C. Producers will prevent the price level from increasing and hurting their sales.
Explanation:
When the FED buys securities from the public, the money supply increases and this raises the general price levels.
When general price level increases, workers would demand higher wages and the prices of goods and services would rise.
I hope my answer helps you
