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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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Year 1 Year 2 Amounts billed to clients for services rendered $ 182,000 $ 232,000 Cash collected from clients 154,000 184,000 Ca
Advocard [28]

Answer:

Explanation:

Year 1:

Cash collected from clients $154,000

Salaries paid to employees for services rendered during the year $27,000

Utilities $84,000

Purchase of insurance policy $58,200

So, in order to find net cash flow, $(154000-27000-84000-58200)=-15200

Year 2:

Cash collected from clients $184,000

Salaries paid 34000

Utilities paid 94000

Insurance paid is 0

So, net cash flow $184000-$(34000+94000)=$56000

Year1 paid 27000 in salaries, accrued =32000

So still 5000 has to be paid in year 2

Year 2 paid 34000 ⇒ so accrued is 29000

Insurance accrued for each year is 58200/3=19400

Income statement for year 1 and 2

                                         year1   year2

Revenue:  

Income from services 182000 232000

Expense

Salary 84000 94000

Utilities 32000 29000

Insurance 19400 19400

Net income 46600 89600

5 0
3 years ago
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Vincent enjoys investing his money in ways that can generate a return. He realizes that also a chance that his investment will d
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3 0
3 years ago
What is the effective annual rate​ (EAR)?
Musya8 [376]

Answer: The effective annual rate​ (EAR) is<u><em> the interest rate that would earn the same interest with annual compounding.</em></u>

The Effective Annual Rate (EAR) is know as the interest rate earned on a subject/asset or remunerated on a borrowing as a consequence of compounding interest over period of time.

The formula to compute effective annual rate is as follow:

Effective Annual Rate = [1 + \frac{interest rate}{compounding periods}]^{time periods} - 1

<u><em /></u>

<u><em>∴ Option (c) is correct.</em></u>

7 0
2 years ago
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The market capitalization rate on the stock of Aberdeen Wholesale Company is 10%. Its expected ROE is 12%, and its expected EPS
Shalnov [3]

The Price-earnings ratio of Aberdeen Wholesale Company equals to 14.29.

<h3>What is a P/E ratio?</h3>

Its means the Price-earnings ratio which is used to value a companies by comparing the company's share price to its earnings per share.

<u>Given data</u>

Market capitalization rate = 10%

Expected ROE = 12%

Expected EPS = $5

Plowback ratio is 60%

<h3>What is the Dividend payout ratio?</h3>

= 1 - 0.6

= 0.4

<h3>What is the Expected dividend?</h3>

= 0.4 × $5

= $2

<h3>What is the Growth rate?</h3>

= 0.6 * 12%

= 7.2%

<h3>What is the Firm Value?</h3>

= $2 / (0.10 - 0.072)

= $2 / 0.028

= $71.43

<h3>What is the P/E ratio?</h3>

= $71.43 / $5

= 14.286

= 14.29

Hence, the Price-earnings ratio of Aberdeen Wholesale Company equals to 12.5.

Therefore, the Option D is correct.

Read more about Price earnings ratio

<em>brainly.com/question/14690388</em>

5 0
2 years ago
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