Fed can achieve its goals using the given tools as shown below.
<h3>
What is money supply?</h3>
- The money supply (or money stock) in macroeconomics refers to the entire volume of currency held by the public at a given point in time.
- There are numerous definitions of "money," but common measures often include currency in circulation and demand deposits (depositors' easily accessible assets on financial institutions' accounts).
- A country's central bank may utilize a definition of what constitutes legal money for its own reasons.
- Money supply data is recorded and released, typically by a government agency or the country's central bank.
- Changes in the money supply are monitored by public and private sector experts because it is believed that such changes affect the prices of securities, inflation, exchange rates, and the business cycle.
In the given situation, Fed can achieve its goals using the given tools:
- Change the reserve requirement - The Fed should lower the reserve requirement to 48 ± 1 percent.
- Change the discount rate - The Fed should lower the rate by 12.50 ± 0.01 percentage points.
- Use open market operations - The Fed should buy $125.00 ± 0.01 worth of bonds.
Therefore, Fed can achieve its goals using the given tools as shown.
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The complete question is given below:
The Fed wants to increase the money supply (which is currently $5,000) by $250. The money multiplier is 2, and people hold no cash. For each 1 percentage point, the discount rate falls, and banks borrow an additional $10. Explain how the Fed can achieve its goals using the following tools:
a. change the reserve req.
b. change the discount rate.
c. use open market operations.
Answer:
B. shift the demand curve leftward for tanning
Explanation:
According to the Food and Drug Administration, "...the ultraviolet (UV) radiation from these devices [sunlamps and tanning beds] poses serious health risks." As a result of reading this, the local mayor decides to introduce legislation that will put a 10% excise tax on tanning consumers. From an economic point of view, this will________
A. shift the demand curve rightward for tanning.
B. shift the demand curve leftward for tanning.
C. shift the supply curve rightward for tanning.
D. move down along the demand curve for tanning.
The excise tax is a legislated form of tax on specific goods and services at purchase; an indirect type of indirection taxation imposed on the manufacture, sale or the use of certain type of good and products. They are often levied upon goods services such as cigarettes, gasoline,alcohol, tobacco and gambling. They are considered unnecessary goods and services, Taxes are levied on them to raise their price and in order to reduce the amount they are been used.
The local mayor decides to introduce legislation that will put a 10% excise tax on tanning consumers in order to lower the demand for these devices
Consumer will now need to pay higher tax in addition to the price they will pay for the device, this is make people to tan less because of the extra cost. this will lead to a shift in the demand curve
This is definitely true for all people.
Answer:
C) liaison
Explanation:
Based on the information provided within the question it can be said that George is most likely to be playing the role of a liaison. This role focuses on managing the flow of information to and from the company as well as creating and maintaining a network of contacts with whom the company can interact and do business with. Since Regina is networking with managers through her network of contacts in order to gain information then she is definitely a liaison
Answer:
The market for pork would fall because a close substitute, chicken, is now less expensive, thus, people have less incentive to buy pork because they can buy chicken instead.
In other words, demand for pork fell because supply for chicken grew, chicken became cheaper, and part of the demand that was for pork before, transferred to chicken.
