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4 years ago

What contractionary monetary policy actions may be used to help reduce inflation?

Business

2 answers:

Scilla [17]4 years ago

8 0

Answer:

The answer is B.

Explanation:

To make thing more simple, the money supply is reduced, so banks charge a higher interest rate on loans, leading to slower borrowing and growth. Monetary policy involves controlling the supply of money, sometimes through interest rates. When the supply of money is reduced, central banks make borrowing money more difficult and less appealing by raising interest rates on a variety of loans.

Additionally, it is on USA test prep.

Nadya [2.5K]4 years ago

3 0

Answer:

The answer is B.

Explanation:

Contractionary monetary policy is a policy adopted by Central banks when the economy is heating up i.e when the economy is moving faster than it can withstand. So this is used to slow down the economy.

There is always a higher inflation and money supply is high when the economy is heating up.

So to contract or slow down the economy, the central banks increase the interest rate, this increase in interest rate discourages borrowing from households, businesses and even commercial banks and when there is a low demand for borrowed fund, money supply (total quantity of money in circulation) decreases.

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On January 1, 2018, Cat Power Company reported stockholders' equity of $705,000. During the year, the company paid dividends of

Setler79 [48]

Answer:

D. Net income of $150,000

Explanation:

$705,000 + X - $30,000 = $825,000

X = $150,000

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3 years ago

In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuf

Vikentia [17]

Answer:

The answer is option A) In the short-run the effects of the housing and financial crises raise both inflation and the unemployment rate.

Explanation:

Deregulation in the financial industry was the primary cause of the 2008 financial crash and an increase in world prices of oil and foodstuffs were affecting the economy.

The financial crisis permitted banks to engage in hedge fund trading with derivatives and when the values of the derivatives crumbled, banks stopped lending to each other.

It allowed speculation on derivatives backed by cheap and improper issuance of mortgages, available to even those with questionable creditworthiness.

In the short-run the effects of the housing and financial crises of 2008 raised both inflation and the unemployment rate.

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3 years ago

An employee's decision to inform the press or government officials of his or her firm's unethi-cal practices is referred to as a

Tju [1.3M]

Answer: A) Whistle-blowing

Explanation: Reporting irregularities or whistleblowing is the term used when a person gives information regarding an illegal act, such as corruption, sexual harassment, among others. We can refer to this action with the name "report irregularities" or otherwise. The person usually has a close relationship with the organization, often it is an employee, but sometimes it can be a supplier or a customer. He becomes a whistleblower when he observes behaviors or actions that he considers to be improper, illegal behaviors and that do not respect the company´s code of conduct, and reports that suspicion as a matter of reporting irregularities.

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3 years ago

In 1679 new hamisphere was

weqwewe [10]

In 1679 , New hemisphere was separated from Massachusetts.
New hemisphere become a royal colony of the british crown.

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3 years ago

During 2017 sales on account were $866000 and collections on account were $522000. Also during 2017 the company wrote off $42500

Komok [63]

Answer:

There is a change of $27,500 (decrease)

Explanation:

Cash realizable value is the amount of money that the company expects to receive from their accounts receivable after deducting all uncollectible accounts.

First, we must compute the change in gross accounts receivable from the transactions happened during the year.

Sales on account less collections less write-offs = change in Gross accounts receivable.

$866,000 - ($522,000 + $42,500) = $301,500 (increase in gross accounts receivable)

Finally, we can now compute the change in cash realization value by deducting uncollectible accounts to gross accounts receivable.

$301,500 - $329,000 = ($27,500)

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4 years ago