It should be noted that in a situation where the Fed sells <u>securities</u>, it's employing the<u> contractionary fiscal policy</u>.
A contractionary fiscal policy is used when the gross domestic product is growing too fast. It uses to curb inflation.
Contractionary monetary policy leads to a decrease in the money supply in the economy and causes interest rates to rise. This decreases expenditure activities.
Consequently, demand decreases in the short run causing a reduction in the real GDP.
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Answer:
Be bored and less creative than usual
Explanation:
This is the complete question
Martha is a highly skilled employee at DistantTool Editorial. She specializes in web designing. Recently, she has been assigned to a project that only requires rudimentary skills. In this scenario, while working on the project, Martha will most likely A) have the experience of flow. B) display anxiety and low self-esteem. C) show apathy and diminished work life. D) be bored and less creative than usual.
Martha's new assignment doesnt challenge her in any way and since it doesnt need so much effort and not tasking, she will get bored and her creative juices will not function effectively
Answer:
This approach minimizes the risk business has to take during foreign ventures. Such as finding new markets, storing the products till distribution, handling customer records and grievances and so on.
In other words, the cost of participating overseas.
Explanation:
Imagine you own a company that produces toys. Exporting your own product is profitable. Yet when the demand and the customer base grow, it becomes difficult to hand the distribution of the product, financials, tax/legal requirements and documentation all by your self.
An authorized agent or a distributor make the work much easier as they support you in various tasks we've mentioned above.
In the process, you'll have more time to think of new ways to grow your business while your agent/distributor handle the day to day tasks in operations.
Answer:
Current value per share is $13.33
Explanation:
The two stage growth model of DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,
P0 = D0 * (1+g1) / (1+r) + [ (D0 * (1+g1) * (1+g2) / (r - g2)) / (1+r) ]
Where,
- g1 is the initial growth rate which is 20%
- g2 is the constant growth rate which is 5%
- r is the required rate of return
P0 = 1 * (1+0.2) / (1+0.14) + [ (1 * (1+0.2) * (1+0.05) / (0.14 - 0.05)) / (1+0.14) ]
P0 = $13.33
Answer:
False
Explanation:
Net capital outflows is the difference between purchases of foreign assets by US citizens and the purchase of US assets by foreigners.
Net capital outflows = $450 million - $575 million = - 125 million
It implies that foreigners spent more and US citizens spent less, this is a trade surplus.
Trade surplus occurs when exports exceeds import.