Answer:
Restrict the money supply and increase interest rates
Explanation:
When the economy is expanding at a fast pace, the Fed applies contractionary monetary polices to slow it down. Some of the tools available to the Fed to slow down growth includes an increase in the interest rates, increased reserve requirements, and open market purchases.
The Fed controls the market interest rate by adjusting the fed fund rate. An increase in interest rate makes borrowing expensive and unattractive to households and businesses. When firms and individuals are not borrowing, the result is a reduction in consumption and investment expenditure, thereby slowing down growth. Open market purchases reduce the money held by banks. Banks will, therefore, have few amounts available to lend out to customers.
Answer: b. Producer surplus is maxmized
Explanation:
As a result of inefficiency in a monopoly market, there exists a deadweight losses that arises because customers lose surplus due to not getting the optimal price. As a result, they are unwilling to spend at a certain amount to buy goods and services which leads to a loss for the monopoly as well.
If a monopoly is able to charge a different price for each customer based on that buyers willingness to pay they would be able to capture all the consumer surplus and make it producer surplus so that the producer surplus is maximized.
The term that is being referred here is the REPLACEMENT COST. What the market generally means when lower of cost or market rule is being applied to inventory valuation, this refers to replacement cost. This is the cost applied to an item when it is being replaced. The cost is being applied is the same as its pre-loss condition.
Sticking to a budget can really help. If you have a certain amount for clothes, and another for food, and one for extras, stick to that budget. Don't go off and buy un-necessary items. That way you'll have extra when you absolutely need it, and enough in a certain area for when you go shopping for specific items.
~Silver
Answer: (D) Policy prescription
Explanation:
The policy prescription is refers to the analysis of the policy that is economically prescribed and it majorly focuses on explain the occurrence of the recession and the depression for reducing their specific effects.
The policy prescription best describe about the function of the policies about the economical recovery. According to the question, the Keynesian focus on the policy prescription for minimize their actual effects.
Therefore, Option (D) is correct.