Answer:
See below.
Explanation:
For a, first we calculate the credit multiplier of the economy,
Credit multiplier = 1 / reserve ratio
Credit multiplier = 1 / 0.25 = 4
This means that any change in money supply will be 4 times as much in the economy, hence to induce a change of $120 billion, the Fed will decrease the money supply by 120/4 = $30 billion. This will increase the interest rates just enough to stabilize aggregate demand.
For b, we again start by calculating the credit multiplier.
Credit multiplier = 1/0.10 = 10
Since the Fed want to stimulate investment, it needs to use an expansionary monetary policy.
The Fed thus increases the money supply by 150/10 = $15 billion.
This will have the total effect of 150 billion on the whole thus achieving the Fed's objectives.
Hope that helps.
Answer:
A speculative risk is uncertain degree of gain or loss. Every speculative risk are made as conscious choices and are not just a result of uncontrollable circumstances.
Explanation:
It's basically a conscious choice you made!
Answer: Evaluate performance
Explanation:
According to the given question, Greg is observing his company sales and also the profit quarterly by ignoring the step evaluating the performance in the marketing planning process.
The evaluating performance is one of the factor that basically helps in examine the proper management, activities and the outcome of the performance.
As, it helps in improve the effectiveness and also characteristics of the result that helps in managing the sales and the profit in an organization. Therefore, evaluate performance is the correct answer.
Answer:
$329,840
Explanation:
Calculation to determine the net note payable to Grant
Net note payable to Grant=$70,000 × 4.712
Net note payable to Grant= $329,840
OR
Net note payable to Grant= ($70,000 × 5.712) – $70,000
Net note payable to Grant= $329,840
Therefore On AGH's December 31, 2017 balance sheet, the net note payable to Grant is:$329,840
