Answer:
$725 billion
Explanation:
Given that,
Current level of output = $600 billion
Increase in government expenditure = $25 billion
Nation’s MPC = 0.8
Multiplier = 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.8)
= 5
Therefore, the nation’s new level of total output:
= Current level of output + (Change in government expenditure × Multiplier)
= $600 + ($25 × 5)
= $600 + $125
= $725 billion
The term that gives clues about decision making towards one goals as well as ones activities as regards this question can be referred to as Planning.
- Planning can be regarded as process that involves thinking about activities needed in achieving ones goal as well as organizing these activities in way that would make it easier to achieve the desired goal.
- Planning can as well be explained as management process which concerned about defining goals for the future of company and its direction.
- Planning helps in determining the missions as well as the resources needed in achieving those targets.
<em>Therefore, Planning involve setting ones goal and all process involves in pursuing it.</em>
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Answer:
1. Discount rate.
2. Increase.
Explanation:
A Federal Reserve Bank is one of the twelve regional banks of the Federal Reserve System in the United States of America. The Federal Reserve Banks are saddled with the responsibility of implementing the monetary policy designed and provided by the Federal Open Market Committee (FOMC).
Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;
1. Controlling the issuance of currency in United States of America: the Fed promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
2. Providing banking services to all the commercial banks in the country: the Fed is the "lender of last resort.
3. Regulating banking activities: it has the power to supervise and regulate banks.
The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.
<em>Additionally, the interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. Also, the Fed can increase the money supply by lowering this rate (discount rate) and thus, empowering the member banks to lend more money.</em>
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