Answer:
Reflection of order of operations when the Fed buys bonds on the open market:
a. Money supply increases, interest rates decrease, investment spending increases, AS shifts right.
Explanation:
When the Federal Reserve buys bonds on the open market, the action increases the money supply in the banks. This allows banks to increase loans, and investors will increase investments. It also increases the price of government securities and effectively reduces their interest rates, thereby decreasing the overall interest rates while promoting investments.
Answer:
e. 71 dollars
Explanation:
Peter was willing to but the wine for $45
In a year, there is an increase of $15 = $45 + $15 = $60
The interest rate of 10% of $60 = $6
Total = $66 ~ $70
Therefore, the amount he is willing to pay for the win if he buys it as investment would be 71 dollars.
The words should be exact so you don’t confuse it wth other ideas or change it entirely
Answer:
The correct answer is: Zero, Option c.
Explanation:
The price elasticity of demand shows the change in the quantity demanded of a commodity due to a change in the price of the commodity.
The cross-price elasticity is the change in the quantity demanded of a product because of a change in the price of related good.
The cross-price elasticity is calculated by finding the ratio of proportionate change in quantity demanded and proportionate change in price.
Cross-price elasticity in this situation will be
= 
= 
= 0
The cross-price elasticity is zero. This implies that the two goods have no relation.
Answer:
The correct answer is B) False
Explanation:
An ethnocentric approach to management will precisely take into account the cultural characteristics of a particular ethnic group, therefore, the probability of a manager taking a decision that conflicts with the values of said ethnic group is lower.
For example, suppose that a pizza delivery firm wants to set up business in Italy. An ethnocentric approach would result in the avoidance of selling hawaian pizza in Italy, because Italians do not like that specific type of pizza.
