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
Vikki [24]
3 years ago
5

If money demand shifted to the left and the Federal Reserve desired to return the interest rate to its original value, it could_

_________.a)buy bonds to decrease the money supply.b)buy bonds to increase the money supply.c)sell bonds to increase the money supply.d)sell bonds to decrease the money supply.
Business
1 answer:
wlad13 [49]3 years ago
3 0

Answer:

The correct answer is option d.

Explanation:

A leftward shift in the money demand curve would cause the demand for money to decline. As a result, the interest rate will fall and the equilibrium quantity of money will decline as well.  

If the Fed wants to restore the interest rate to its original value, it has to decrease the money supply.  

It needs to adopt a contractionary monetary policy. The fed can sell bonds in the open market, the payment made by the sellers will be deducted from their bank accounts.  

This will decrease the reserves of the bank. This further decreases their lending capacity. As the supply of money decreases, the interest rate will increase.

You might be interested in
​In 2017, in proposing a $1 trillion increase in government spending on infrastructure, President Trump argued that the spending
VLD [36.1K]

Answer:

A. the economy is producing at less than its potential output and has some cyclical unemployment.

Explanation:

Increase in government spending will increase domestic income, only if economy is producing at less than its potential output.

Increase in federal government spending raises the level of 'govt expenditure' in Aggregate Demand. This creates 'Excess Demand' (AD > AS). However, if the economy is at full employment level, i.e all the resources are already best efficiently utilised as per their production potential. Then, the economy can't increase its domestic income more than its full employment (full potential) level. So : Increase in government spending in full employment case, wont increase total production/ income/ employment further ; as the economy is already at full employment & can't increase economic activity beyond that.

3 0
2 years ago
Hi CAN SOMEBODY HELP ME PLEASE YOU DON'T UNDERSTAND HOW I STRUGGLE. I WILL GIVE U BRAINLIST AND 5 STARS IF U ANSWER CORRECTLY ​
CaHeK987 [17]

Answer:

commericials, product endorsements, product features, stuff like that.

Explanation:

Businesses commonly develop websites and blogs to promote their companies, products and services. Blogs offer an interactive tool to communicate information to customers and receive feedback through comments. Additionally, companies use sites and blogs as media for banner ads and other ad placements. If u want you can write about features and product endorsements too.

8 0
3 years ago
When a company sells a product for a price that is less than the cost of producing the product, it is engaging in:.
vesna_86 [32]

If a company sells a product at a price that is less than the cost of producing the product, then it is engaged in dumping.

<h3>What do you mean by a Product?</h3>

A product refers to any product, goods, or services intended for sale purposes. Goods, services, experiences, shopping, convenience, specialty goods, consumer goods, and industrial goods are the different types of products.

Dumping refers to when a company or country exports a product that is lower in the foreign market than the domestic export market. According to World Trade Organization, dumping is legal.

Therefore, Dumping is when a company sells a product that is lower than the cost of producing the product.

Learn more about the product here: brainly.com/question/22852400

#SPJ1

7 0
1 year ago
(Consider This) According to economist Abba Lerner (1903-1982), fiscal and monetary policy is analogous to
bulgar [2K]

Answer:

a steering wheel in an automobile.

Explanation:

Abba Lerner a twentieth-century economist, is widely known for his suggestion of the utilization of fiscal policy and monetary policy as a form of Keynesian economics. In his analysis, he declared that fiscal and monetary policy is analogous to a steering wheel in an automobile.

Hence, the correct answer to the question is "a steering wheel in an automobile."

3 0
3 years ago
Which of the following is a strategy that you can use to protect yourself from the risks involved in owning a home? Pay PMI. Buy
AlexFokin [52]
I think the correct answer from the choices listed above is the third option. A strategy that you can use to protect yourself from the risks involved in owning a home would be to purchase homeowner’s insurance. It<span> is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.</span>
4 0
3 years ago
Read 2 more answers
Other questions:
  • Jessie and Preston are both managers at CPA4U, a large accounting firm. Each has a very different management style. Jessie frequ
    11·1 answer
  • If lucinda has only $18 to spend and the price of kewpie dolls and the price of beanie babies are both $6, how many of each woul
    12·1 answer
  • Gregory is a manager in an insurance company and heads a team of 30 agents. In order to meet the company's target, every agent n
    7·2 answers
  • Allegheny Energy Supply Co. and Monogahela Power Co., a subsidiary, filed suit against Anker West Virginia Mining Co., later acq
    7·1 answer
  • Developing the marketing mix and its budget are part of which step in the planning phase of the strategic marketing process?
    6·1 answer
  • We calculated the gains and losses from price controls on natural gas and found that there was a deadweight loss of $5.68 billio
    15·1 answer
  • The primary difference between accrued revenues and unearned revenues is that accrued revenues have:________. a) been recorded a
    9·1 answer
  • Which of the following statements is correct?
    10·1 answer
  • Which statement is true according to the article?Choose one:A. Chilean companies aim to improve their wine distribution in China
    6·1 answer
  • Select ALL the correct answers. What was an effect of tax legislation signed by President Trump in 2017
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!