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
rosijanka [135]
4 years ago
8

Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and de

crease the money supply when the price level rises. If the economy starts from long-run equilibrium and aggregate demand shifts right, the central bank must a. increase the money supply, which will move output back towards its long-run level. b. increase the money supply, which will move output farther from its long-run level. c. decrease the money supply, which will move output back towards its long-run level. d. decrease the money supply, which will move output farther from its long-run
Business
1 answer:
KatRina [158]4 years ago
6 0

Answer: Option (c) is correct.

Explanation:

Correct Option: Decrease the money supply, which will move output back towards its long-run level.

If the economy is in long run equilibrium and there is a rightward shift in the aggregate demand curve then as a result output and price level rises in an economy.

Here, the central must follow the contractionary monetary policy to stabilize the economy.

So, the central bank must decrease the money supply to move the output and price level back to its initial position.  

You might be interested in
An operational plan provides a detailed road map of the steps necessary to achieve operational goals (sometimes referred to as o
lesya692 [45]

Answer: single use plan

Explanation: In simple words,single use plan refers to the plan that is made for achieving a goal that will not repeat in future.

A program plan refers to the plan that an organisation makes with an objective of outlining the activities and events that the employees have to follow for achieving organisational goals.  

Hence, from the above we can conclude that a program is a single use plan as it outlines activities for a specific project that needs to be performed.  

4 0
3 years ago
Given the following information, analyze XYZ Company's liquidity. Year 2013 Total quick assets $30,000 Total current assets $40,
kogti [31]

Answer:

  • A. They are more liquid than others in their industry.
  • C. They have sufficient quick assets to pay off short-term debt if needed.

Explanation:

The Acid-test and current ratios are used to measure the liquidity of a company with higher figures meaning more liquidity. XYZ Company has a both a higher acid-test and current ratio so they are more liquid than others in their industry.

The Acid-test and current ratio also enable one to find out if a company is able to pay off its current obligations/ liabilities using current assets. With the acid-test ratio being above one, XYZ is able to pay off short-term debt using quick assets.

6 0
3 years ago
Integrated Masters Inc. (IMI) is presently operating at 80% of capacity and manufacturing 116,000 units of a patented electronic
balu736 [363]

Answer:

a. $3.13 per unit

b. No

c Yes

Explanation:

The computation is shown below

a. Fixed overhead per unit is

= Fixed overhead ÷ Number of units manufactured

= $363,000 ÷ 116,000 units

= $3.13 per unit      

b. The cost calculation is not appropriate because the fixed overhead per unit is not be involved while calculating the cost

c. Now the acceptance of the offer should be based on total relevant cost which is            

Total relevant cost

= $6.1 + $6.1 + $8.1

= $20.3  

Since the offer is accepted because total relevant cost is less than the offered purchase price i.e $24.50    

       

3 0
3 years ago
You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $7.80. You have projected that di
Lina20 [59]

Answer:

The answer is $56.68

Explanation:

Solution

We recall that:

The firm paid a dividend of =$7.80

The projected growth of dividends is at a rate = 9.0%

The annual return = 24.0%

Now,

V = ($7.80 * (1.09)/(.24 - 0.9)

= (8.502)/(.24-0.9)

= (8.502) * (-0.66)

= $56.68

Therefore, this would be the most we would pay for the stock. If we paid less than that, our return would be above the 24%.

3 0
3 years ago
Joanie recognizes that the board and CEO are particularly worried that individuals will post negative information about the comp
Vilka [71]

<u>Answer</u>:

<u>Should create a non disclosure agreement policy</u>

<u>Explanation:</u>

This is a legally binding agreement that mandates parties to a contract in this case between an employer with an employee, in which the employee agrees not to disclose publicly or to any one negative information about the company that is deemed confidential (secret or private), and that may affect the company negatively.

Thus, to reduce the worries of the board and CEO, Joanie should create a non disclosure agreement signed by employees.

8 0
3 years ago
Other questions:
  • The following transactions occur for Badger Biking Company during the month of June: a. Provide services to customers on account
    9·1 answer
  • Assume that the market for soybeans is purely competitive. currently, firms growing soybeans are experiencing economic profits.
    8·1 answer
  • Which of the following statements regarding a company's social responsibility and sustainability strategy is FALSE?
    5·2 answers
  • F your own idea,why does a business exist.?​
    15·1 answer
  • A producer with only one product has total fixed costs of $15,000 per month. In addition, it cost the producer $100 in variable
    12·2 answers
  • A principle purpose of the market model is to show how equilibrium price and quantity will change as a result of some 'exogenous
    8·1 answer
  • The economies of many countries, such as ____, are based on manufacturing electronics.
    12·1 answer
  • Trade industry short note​
    7·1 answer
  • So, I’ve decided to leave Brainly. I had a great time helping people, so I hope you have a great day. :) use this time to miss m
    5·2 answers
  • The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!