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Strike441 [17]
3 years ago
13

The number of jobs available in the U.S. economy is largely determined by the number of workers private firms choose to hire. In

2016, firms employed 124 million people. The Federal Reserve is part of the federal government and hires relatively few people, about 22,000 in 2016. Even if the Fed doubled or tripled its work force, it would have little impact on employment levels, yet economists strongly link actions of the Fed to the level of total employment in the economy. Carefully explain how the Fed is able to affect the level of total employment in the economy. Be sure to include all relevant actions the Fed can take in affecting total employment.
Business
1 answer:
skelet666 [1.2K]3 years ago
7 0

Answer:

The Federal Reserve is in charge of the monetary policy in the United States. It expands or reduces the money supply (the total amount of money in the economy) by raising or lowering the interest rate.

There is a relationship, in the short run, between unemployment and money supply. The higher the money supply, the lower the unemployment rate, and viceversa: the lower the money supply, the higher the unemployment rate.

This relationship exists because when the money supply increases, the interest rate falls, if the interest rate falls, investing becomes cheaper, and as a result, firms invest more and hire more workers.

The opposite happens when the money supply is contracted: interest rates rise, investing becomes more expensive, and firms hire less people.

This is why the Fed has a great deal of power when it comes to employment in the economy.

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LO 3.3When sales price decreases and all other variables are held constant, the break-even point will ________.
miss Akunina [59]

Answer:

increase

Explanation:

Break-even point is used to determine the minimum number of units a business needs to sell in order to fully cover the fixed costs. The break-even  formula is below;

Break-even = Fixed cost / (Sale price - Variable cost)

If sales price (SP) decreases while keeping other factors; variable cost(VC) and fixed cost(FC) constant, the denominator amount will be smaller, making the break- even point to increase.

3 0
3 years ago
RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $50,000 purchase price
Jet001 [13]

Answer:

savings per year = $20,500 - $10,500 = $10,000

the loan and interest are not included in the calculation

initial outlay = $50,000

cash flows 1-8 = $10,000

cash flow 9 = $15,000

discount rate = 15%

using a financial calculator, the NPV = -$862.85, and the IRR = 14.53%

8 0
3 years ago
A bond will sell at a premium when its coupon interest rate: is lower than the market interest rate on similar bonds. equals the
DiKsa [7]

A bond will sell at premium when its coupon interest rate <u>exceeds the market interest rate on similar bonds.</u>

Explanation:

Premium bonds are the bonds that are trading above par in the market. Further on the bond would trade on premium only when it offers a coupon rate exceeding the market rate that is being offered on similar bonds.

In simple lay man's language, the term premium and discount can be understood to carry a crude definition of high and low demand. When the demand would be high, the bonds would fetch a higher value and vice-versa.

Thus Bonds would highly be valued when it is paying interest that is greater than the interest prevailing in the market contemporarily.

8 0
3 years ago
JacksonJackson Bank lends JabbourJabbour Clothing Company ​$125 comma 000125,000 on September 1. JabbourJabbour signs a ​$125 co
lara31 [8.8K]

Answer:

Explanation:

The journal entry is shown below:

Interest expense A/c Dr $3,000

           To Interest payable A/c $3,000

(Being interest is recorded)

The computation of the interest expense is shown below:

= Principal × rate of interest × number of months ÷ total number of months in a year

= $125,000 × 6% × (4 months ÷ 12 months)

= $2,500

The four-month is calculated from the September 1 to December 31

4 0
3 years ago
Mining Corporation bought land for $330,000 (residual value $22,000) that is estimated to yield 660,000 pounds of a removable na
likoan [24]

Answer:

35933

$46,200

Explanation:

Depletion = amount of pounds extracted x depletion factor

depletion factor  = (cost of asset - salvage value) / estimated yield

(330,000 - 22,000) / 660,00 = 0.467

2021 = 0.467 x 99,000 = $46,200

6 0
3 years ago
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