If the federal open market committee decides to increase the money supply, then

Business

1 answer:

OLEGan [10]3 years ago

8 0

Answer:

the Federal Reserve creates dollars and uses them to purchase government bonds from the public.

Explanation:

The money supply is increased by the Federal Reserve Open Market Committee under expansionary monetary policy actions to increase the level of aggregate demand in the market and push the level of output when business activity in the economy is low and the economy is experiencing a recession.

The FOMC creates dollars and uses them to purchase government bonds from the public that injects money in the market by increasing the credit creation capacity of commercial banks. As the money supply increases, the spending capacity of consumers is increased, either by lowering the cost of debt on their credit cards or by increasing employment in the market with increased investments by firms as they borrow with greater zeal when the cost of borrowing is low.

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When does the government assume a contractionary fiscal policy position?

Step2247 [10]

The government assume a contractionary fiscal policy when the economy is strong. When the economy is strong, prices increases as a result of fierce competition for resources. In this situation, the government will assume a contractionary fiscal policy by reducing its spending and by increasing tax. This position will normally create a surplus for the government: a surplus is the amount of taxes left over after government spending.

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3 years ago

The demand for labor depends primarily on the additional output produced as a result of hiring an additional worker and A. the a

7nadin3 [17]

Answer:

The correct answer is option A.

Explanation:

The demand for labor is said to be a derived demand as it is derived from the demand for products being produced using labor. It depends on the marginal productivity of labor and marginal revenue product of labor.

In other words, we can say that the demand for labor depends on the increase in the output produced due to hiring an additional unit of labor and the revenue earned from the sale of that additional output.

The demand curve of a firm is also called its marginal revenue product of labor curve. The marginal revenue product of labor is equal to the marginal product of labor times output price.

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3 years ago

Linda owns and runs her own firm. She also serves on the boards of several companies. Although she does not work for these compa

Vlad [161]

Answer:

<h2>The answer, in this case, would be true or option a) given in the answer choices.</h2>

Explanation:

In any business, an outside director is commonly identified as an individual who is officially not an employee or a shareholder of the company or business enterprise.
An outside director can board meetings, analyze essential business information and interact and share opinions with the shareholders regarding company decisions and operational modes.
The outside director is also eligible to receive certain financial benefits such a periodic annual fee and other stock/bond investment options.

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3 years ago

Why might complaints of age discrimination grow when the economy is slow? companies work very hard to retain their best talent i

siniylev [52]

Companies may try to lower their labor costs by laying off higher paid workers.

Typically the higher paid workers will be professionals who have worked their way up over time and tend to be older, while younger workers fresh out of school and looking for their first jobs will be more willing to take lower salaries.

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Prior to 2008, CBS Corp. owned approximately 18% of Westwood One, Inc., which managed the CBS Radio Network. CBS, in turn, manag

olga nikolaevna [1]

Answer and explanation:

The influence a company may have over another when one of them has a number of shares that belongs to the other is determined by the percentage of ownership that the number of shares represent. If its lower than 20%, it is said the company has <em>no influence</em> over the other. From 20% to 50% one company has <em>significant influence</em> over the other. Finally, with more than 50% of the outstanding shares in possession, one company has <em>control </em>over the other.

In that case, CBS Corp. has no influence over Westwood One, Inc. since it owns only 18% of the outstanding shares.

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3 years ago