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OLga [1]
3 years ago
14

When a financial friction is added to the short-run model it: Group of answer choices shifts the MP curve up. shifts the IS curv

e down. shifts the AS curve down. is represented by a movement along the MP curve. is represented by a movement along the IS curve.
Business
1 answer:
Alexeev081 [22]3 years ago
7 0

Answer:

When a financial friction is added to the short-run model it: shifts the MP curve up.

Explanation:

The short-run model, IS/MP model, describes the Investment-Savings/Monetary Policy model used by the US Federal Reserve to decrease the real interest rate through the Federal Funds rate, i.

The Federal Funds rate is the interest rate that commercial banks with excess reserves lend to others in deficit.  The resulting shift occasions a decrease in the real interest rate which triggers an increase in the inflation rate, and vice versa.  With such short-run changes in the interest rate, inflation and output is influenced in desirable directions by the Federal Reserve as a foundation to achieve long-term shifts in the AD-AS model.

The AD-AS model is a long-term model that describes Aggregate Demand and Aggregate Supply which impact long-term inflation, interest rates, and output.

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yes it would

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Which of the following best explains the difference between short-term and long term planning?
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3 years ago
One approach to understanding corruption perceptions is to compare information across a variety of countries. Your company has h
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Explanation:

A  major problem in investing in the countries of South America are the problems arising from corruption, political instability and bureaucratization.

There are also many positive points that make large companies operate in such countries, such as Brazil, for example, which is a large country with enormous potential for consumption and also local and government incentives for setting international companies in the country.

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It is important, therefore, that there is an accurate internal control over the businesses and the corruption-related indexes and an active and regular monitoring of data essential to the business.

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4 0
3 years ago
Tony’s Market recorded the following events involving a recent purchase of inventory: Received goods for $80,000, terms 2/10, n/
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Answer:

Correct option is D

Answer is increased by $ 77232

Explanation:

Effect on Inventory:    

Increase due to purchase $80000  

Decrease due to return   -$1600  

Increase for freight paid  $400  

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<u>Net Increase in Inventor =$77,232</u>

4 0
3 years ago
The main function of the Federal Reserve System is to:
PolarNik [594]

Answer:

D. Serve as the fiscal agent for the Federal government

Explanation:

The Federal Reserve System (FRS) is the central bank of the United States. FRS regulates the U.S. monetary and financial system.

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4. maintaining the stability of the financial system

5. providing financial services to the U.S. government.

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3 years ago
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