1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
boyakko [2]
3 years ago
5

You and a friend are debating the merits of using monetary policy during a severe recession. Your friend says that the central b

ank needs to lower interest rates all the way down to zero. According to​ him, zero nominal interest rates will boost lending and​ investment; consumers and firms will surely borrow and spend when interest rates are zero. Given that inflation in your country is currently 3​ percent, would you agree with his​ reasoning? Explain your answer.
Business
1 answer:
Gala2k [10]3 years ago
7 0

Answer:

The correct answer is "yes, I agree with his reasoning"

Explanation:

Zero nominal interest rate joined with a three percent inflation rate yields a negative connotation for the real​ rate, which is the rate that is important for investment decisiveness.

You might be interested in
Teachers and guidance counselors may encourage male students to pursue careers in the sciences, but they steer equally talented
Ymorist [56]
I think role playing


7 0
3 years ago
A firm has decided to use the fair value option to record the value of a long-term liability. if the fair value of the liability
emmainna [20.7K]
A fair value option is the alternative  for a business to record its financial instruments at the fair values. Liabilities are company's financial debts or obligations that arise in the course of business operations. They may be long term or short term. In this case, if the fair value of the liability decreases, the firm should respond by crediting the unrealized Holding Gain/loss in the income account.
8 0
3 years ago
As governor, Marcy has decided that anyone who works but earns less than $20,000 a year will have their health insurance premium
harina [27]

Answer:

They have risen.

Explanation:

Demand has increased, but supply has remained constant.

8 0
3 years ago
An 85-year old risk averse investor is not happy about the minimal return she is earning on her current investments. She is stre
Ilia_Sergeevich [38]

Answer:

B. Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds

Explanation:

First of all, since the investor is risk averse and cannot afford to lose money on any risky investment, she should change the mix of her investment portfolio but without increasing risks. Corporate bonds that are AAA-rated carry a very low risk and pay a little higher than money market funds. So a small decrease in money market fund assets and an increase in AAA-rated bonds should yield a slightly higher return.

Investing in equities would be too risky and US Treasuries pay even less interests than money market funds.

6 0
3 years ago
At times, employees may engage in a __________, that is, a strike without the union's consent, or a slowdown, wherein employees
AveGali [126]

Answer:

The answer is wildcat strike

Explanation:

At times, employees may engage in a Wildcat strike that is, a strike without the union's consent, or a slowdown, wherein employees report to work but intentionally decrease their productivity.

6 0
2 years ago
Other questions:
  • The demand for loanable funds will increase if (2 points)
    7·1 answer
  • What is the similarity between the separation of powers, the system of checks and balances, and federalism?
    5·1 answer
  • The type of insurance that pays a set sum of money to a policyholder's survivors is called ____________ insurance.
    12·1 answer
  • A firm's ________ reports the profit or loss for the firm over a specified time period.
    14·1 answer
  • The factor that has the greatest impact on your credit score is
    5·2 answers
  • A proposed project has an initial cost of $38,000 and cash inflows of $12,300, $24,200, and $16,100 for years 1 through 3, respe
    5·1 answer
  • The United States and the Soviet Union felt they were in an ideological war between freedom and democracy and _____ and communis
    15·1 answer
  • State whether each of the following statements is true or false.
    14·1 answer
  • Kiran owns a T-shirt shop in a beach community. For many years, he owned the only T-shirt shop in the area. Recently, several ot
    10·1 answer
  • a type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!