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notka56 [123]
3 years ago
12

Why might long-term interest rates go down at the same time that the federal reserve pushes short-term rates up?

Business
1 answer:
mart [117]3 years ago
3 0
<span>Because the federal reserve would want to discourage quick investments or want people to save more money right now. Long term rates would go down because these are well thought out infrastructure projects that are good for the long run.</span>
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In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 perce
LiRa [457]

The nominal interest rate will rise by 3%.

Nominal interest rate is the sum of real interest rate and inflation rate. Real interest rate is interest rate that has been adjusted for inflation. Inflation is the persistent rise in general price levels.

Nominal interest rate in year 2 = real interest rate + inflation rate

6% + 3% = 9%

Nominal interest rate in year 1 = 6%

Change in nominal interest rate = 9% - 6% = 3%

To learn more, please check: brainly.com/question/21323568

6 0
2 years ago
What is your account balance after one year if you deposited 2000.00 earning 4% interest, compounded annually
il63 [147K]
Answers: i*r*t = 2000*1*4%=80
2000+80=
$2080.00
5 0
3 years ago
Artisanâ Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6 comma 500 units during the year. The company
aliina [53]

Answer:

206,000

Explanation:

Sales                                             = 590000  

- CGS                                           = 302000  

Gross profit                                                                       = 288,000

Less Operating Expenses:

Sellings and Admin expenses      = 67000  

Freight in                                  =     15000  

Total Operating expenses         =       82000  

Operating Income                                                               =         206,000

CGS = Beginning inventory + Purchases - Ending Inventory

CGS = 43,000 +302,000 - 43,000 = 302,000

5 0
3 years ago
There are four basic solutions to handling monopolies:
Brut [27]

Answer:

See the explanation for the answers.

Explanation:

1. "Regulate it" is superior because anti trust makes it open to competition and the firm no longer remains a monopoly.

2. A regulated monopoly lower the price it charges from consumers which benefits the consumers because their consumer surplus increases. A regulated monopoly also offers better quality products.

3. Yes, there are redeeming qualities of monopolies.

Advantages of monopoly-

(a) The profits that the monopolist earns can be invested in R and D.

(b) Monopolies can practice price discrimination which can benefit weaker sections of the society.

(c) Monopolies can invest in latest technology which increases productivity and total output of a country.

(d) The government generates revenue from taxing the monopoly firm.

3 0
3 years ago
Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a fli
qaws [65]

Answer:

d. Shopping

Explanation:

Based on the scenario being described within the question it can be said that this flight is an example of a shopping product. This term refers to a product that consumers purchase very rarely, and because of this choose to compare prices between all the available options in the market because they do not know what a regular price range actually is for that product.

3 0
3 years ago
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