1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
emmainna [20.7K]
3 years ago
10

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.  

You might be interested in
Based on your understanding of the impact of macroeconomic factors, identify which of the following statements are true or false
lawyer [7]

Answer:

  1. True
  2. False
  3. True
  4. True

Explanation:

When an economy has a strong balance sheet and a declining budget deficit, it means that there is less need to borrow from the market which would keep rates lower.

When the economy is weakening, the Fed will try to stimulate it by engaging in actions that weaken short term interest rates so that people and businesses can borrow at lower cost and invest or buy goods and services.

When investors are worried about the riskiness of other financial assets, they usually come to safer assets like U.S. Treasury bonds so that they do not lose money and this is what happened in the credit crisis of 2008. More demand for the bonds led to a rise in their price.

3 0
3 years ago
What is online bill payment
GrogVix [38]
Electronic billing<span> or electronic </span>bill<span> payment and presentment, is when a company, organization, or group sends its bills over the </span>internet.

Hope this helps. Mark brainlist?
4 0
3 years ago
Read 2 more answers
Gonzales Corporation generated free cash flow of $86 million this year. For the next two years, the company's free cash flow is
Viktor [21]

Answer:

$12.49

Explanation:

The computation of the expected current price is shown below:

But before that first we have to determine the current firm value which is

Current firm value = ($86 million ×1.10^1) ÷ 1.11^1 + ($86 million × 1.10^2) ÷ 1.11^2 + {($86 million × 1.10^2 × 1.04) ÷ (0.11 - 0.04)} ÷ 1.11^2

= $1,424.48 million

Now

Expected current share price is

= ($1,424.48 - $275 million + $100 million) ÷ 100 million shares outstanding

= $12.49

7 0
3 years ago
The activity concerned with the production of goods and services is called​
kifflom [539]
Answer: Labor
Explanation: Human Resources (labor) The quantity and quality of human effort directed toward producing goods and services (also called labor).
8 0
2 years ago
Data related to the inventories of Costco Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies E
NemiM [27]

Answer:

$85

Explanation:

Costco Medical Supply's inventory:

                   Surgical Eq - Surgical Supp - Rehab Eq - Rehab Supp

Selling price     $260                  $100           $340               $165

Cost                  $170                     $90           $250              $162

Costs to sell     $30                      $15              $25                 $10

If we apply the net realizable value rule, the value of surgical supplies would be:

NRV = $100 = $15 = $85

the NRV is also the lower of cost since $85 < $90

6 0
3 years ago
Other questions:
  • A company plans to invest X at the beginning of each month in a zero-coupon bond in order to accumulate 100,000 at the end of si
    14·1 answer
  • What is market saturation?
    10·2 answers
  • The interest rate the federal reserve charges on loans it makes to commercial banks is called the:
    9·1 answer
  • Confirmatory value is an ingredient of the primary quality of
    11·2 answers
  • Sales mix is a.a measure of the relative mix of a business's variable costs and fixed costs, computed as contribution margin div
    7·1 answer
  • The unemployment rate of full-employment is also called the rev: 05_30_2018 Multiple Choice cyclical rate of unemployment. poten
    8·1 answer
  • The year-end adjusted trial balance of Hilltoppers Corporation included the following account balances: Cash, $3,600; Equipment,
    8·1 answer
  • When expansionary monetary policy is used to increase aggregate demand, starting from equilibrium, which of the following is tru
    8·1 answer
  • A man purchased a $23,000, 1-year term-life insurance policy for $425. Assuming that the probability that he will live for anoth
    14·1 answer
  • contains funds you have in your bank checking account as travelers' checks and the currency in circulation in the economy.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!