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3 years ago

All interest rates in the economy are set by the federal reserve. true or false

Business

1 answer:

aivan3 [116]3 years ago

6 0

Answer:

False

Explanation:

Most interest rates in the economy are not set by federal reserve. For example, banks decide what interests to pay different kind of deposits and charge loans of different risks on their own (with consideration for competition and profitability).

What the Fed does is set important rates (discount rate and funds rate) that influence other interest rates in the economy.

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Monopolistically competitive firms are not productively efficient because output is less than society's optimal level because a

hoa [83]

Answer:

average total cost per unit is not at its lowest possible cost

Explanation:

A monopolistic competition is defined as such a market where many different firms or companies sells various differentiated products. Here the firm has some control on the price of the product. It is a market structure of considerably no price competition.

The monopolistic firms are not productive enough because the output is very less than the optimum level of the society as the average total cost of the producer per unit is not at the lowest possible cost.

4 0

3 years ago

Mark, the business head of a firm, wanted to give New Year’s gifts to his employees. He discussed this with his employees and de

zysi [14]

Answer:

Identify options.

Explanation:

Added value negotiation is defined as value that is added to a deal between parties to enhance relationship between them. It goes further than normal negotiation by providing something extra.

It focuses on interest, develops options, and creates deals that benefits all parties involved.

Mark did not want to buy cheap bags as a new year gift for his employees, while the employees did not want exorbitant bags.

Mark is focused on adding more value than the employees expect in this scenario.

3 0

3 years ago

Elson co, needs to raise debt and for this purpose issued two different bonds, Bond A and Bond B. Both bonds have 20 years to ma

slega [8]

Answer:

The right solution is "$20.733.16".

Explanation:

According to the question,

Face value,

= $20000

Rate (r),

= .035

Bond A:

= $\frac{Face \ value}{(1+r)^n}$

= $\frac{20000}{(1+.035)^{40}}$

= $5051.45$ ($)

Bond B:

= $\frac{1100\times 12.0941}{(1+.035)^{10}} + \frac{1400\times 10.9205}{(1+.035)^{26}} + \frac{20000}{(1+.035)^{40}}$

= $9431.11+6250.6+5051.45$

= $20733.16$ ($)

5 0

3 years ago

In recent years the cost of producing organic produce in the United States has decreased largely due technological advancement.

Harrizon [31]

Answer:

The correct answer is option D.

Explanation:

Suppose technological advancement has helped in decreasing the cost of producing organic produce. This means that the farmers can now produce more at the same cost. As a result, the supply of organic produce will increase. This will cause a rightward shift in the supply curve.

At the same time, the demand for organic produce has increased. This will lead to a rightward shift in the demand curve.

The rightward shift in both demand and supply curve will lead to an increase in the equilibrium quantity. The change in the price level depends on the extent of the change in demand and supply.

7 0

3 years ago

When originally purchased, a vehicle costing $25,740 had an estimated useful life of 8 years and an estimated salvage value of $

Rudiy27

Answer:

Annual depreciation= $5,660

Explanation:

Giving the following information:

Purchase price= $25,740

Salvage value= $3,100

First, we need to calculate the accumulated depreciation before the change in useful life:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (25,740 - 3,100) / 8

Annual depreciation= $2,830

Accumulated depreciation= 2,830*4= $11,320

Now, we can calculate the new depreciation expense:

Annual depreciation= (25,740 - 11,320 - 3,100) / 2

Annual depreciation= $5,660

4 0

3 years ago