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4 years ago

Traditionally, Fed policymakers have been to use higher interest rates to head off potential asset bubbles .

Business

1 answer:

r-ruslan [8.4K]4 years ago

5 0

Answer:

D) hesitant; because it may cause a slowdown in the economy

Explanation:

The FED usually increases interest rates to halt rapidly increasing inflation, and it could be useful to calm down potential asset bubbles. The problem with raising interest rates is that it immediately cools down the economy and slow down economic growth. It might even stop economic growth and cause a recession.

Since higher interest rates increase the cost of borrowing for everyone in the economy (individuals, businesses), consumption decreases and investment increases. The problem with this is that private consumption represents nearly 70% of the GDP and the money multiplier is responsible for a lot of this.

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Last year, Jose had to invest. He invested some of it in an account that paid simple interest per year, and he invested the rest

VladimirAG [237]

Answer:Please refer to the explanation section

Explanation:

The question is incomplete. We do not have the rate interest for both accounts. We also do not know how much is invested in each account. The question also has a typo, the question says "he invested some of it in an account that paid simple interest per year and invested the rest in an account that paid simple interest per year". We will make some assumption in order to provide a proper solution to this question

Assumptions:

Firstly we will assume he invested in a simple interest account and a compound interest account. assume

The total investment is $1000. $5000 is invested in each account.

Therefore the Present Value (PV) is $5000 for both accounts

Interest rate (R) is 10% per year for simple interest and 10% per per year Compounded monthly for compound interest account

Period (n) = 1 year

Simple Interest Account

Future Value (Simple Interest) = P(1 + Rn)

Future Value (Simple Interest) = $5000(1 + 0.10 x 1) = $5500

Interest from Simple interest account = 5500 - 5000 = $500

Compound interest Account

Future Value (Compound interest) = P(1 + R)^n

Future Value (Compound interest) = $5000(1 + 0.10/12)^12 = 5523.565337

Interest form Compound interest account = 5523.57 - 5000 = $523

compound interest account earned more interest than Simple interest Account

5 0

3 years ago

Read 2 more answers

Dobson Manufacturing is setting up production and distribution facilities in Mexico to meet the growing demand there. The compan

Anton [14]

The statement that best supports the HR vice president's advice is that the traits will help the manager persevere through culture shock.

<h3>What is culture?</h3>

Culture simply illustrates the way of life of people. People face culture shock when they move into a new environment.

In this case, the statement that best supports the HR vice president's advice is that the traits will help the manager persevere through culture shock.

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2 years ago

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The most desirable bundle of rights in time-sharing gives the buyer privileges to rent or sell the interest in the property. the

ratelena [41]

These rights are known as property rights. Property rights allow a person to do what they want with their property, within regulation. These are included in the bundle of rights a time-share buyer has because they are allowed to use, sell, or rent their time-share.

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3 years ago

Which of the following situations would be considered cyclical unemployment? Choose one or more: A. A typewriter repair shop clo

ladessa [460]

Answer:

Which of the following situations would be considered cyclical unemployment?

B-D

Explanation:

D. A worker on the assembly line at Ford is laid off due to a drop in car sales brought on by a weak economy.

B. A recent college graduate cannot find a job anywhere, despite excellent qualifications. The news media report that there are not enough jobs to go around in the economy.

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3 years ago

Teri, Doug, and Brian are partners with capital balances of $20,000, $30,000, and $50,000, respectively. They share income and l

mixer [17]

Answer:

$20,000

Explanation:

For computing the Doug withdrawal amount, first, we have to compute the net income or net loss which is shown below:

Net income/loss = Revenue - expense

= $350,000 - $380,000

= -$30,000

Now Doug share in net loss = Net loss × (his share ÷ total share)

= - $30,000 × (2 ÷ 6)

= - $10,000

We knew that the Doug capital is $30,000 and his share in loss is $10,000

So, its withdrawal amount = $30,000 - $10,000 = $20,000

7 0

4 years ago

​Traditionally, Fed policymakers have been​ ________ to use higher interest rates to head off potential asset bubbles​ ________.

Traditionally, Fed policymakers have been to use higher interest rates to head off potential asset bubbles .