Answer:
Price Level is B. The average level of prices
Explanation:
Price level is the average of current prices across the entire spectrum of goods and services produced in the economy.
Price level refers to the price or cost of a good, service, or security in the economy.
Reference: Kenton, Will. “Reading Into Price Levels.” Investopedia, Investopedia, 27 Sept. 2019
Answer:
d. leverage
Explanation:
Leverage -
It is a type of investment strategy , where the borrowed money is used .
It is the method by which the firm or an organisation is expanded by using the borrowed money as the capital and funding , is referred to as leverage .
Hence , from the given scenario of the question,
The person uses borrowed money to increase the potential return of an investment .
Hence , from the question,
The correct term is leverage .
Answer:
it began in 1760. it started there because of the new inventions that were made like the cotton gin, electricity and other inventions. More and more countries got access to these inventions and they became more and more industrialized and urban.
Answer:
International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by <u>outflows</u> of foreign funds, the Fed may not feel compelled to use a <u>tight </u>monetary policy.
Explanation:
A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.
Outflows of foreign funds or the flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad.
The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.
