I will recommend a contraction of the money supply by increasing the revenue ratio or discount rate or selling bond.
I will also recommend a contraction of the money supply which would reduce the lending ability of the banking system, increase the real interest rate and reduce investment spending, aggregate demand and inflation.
<h2>Further Explanation</h2>
Supposing I am a member of the board of governors and the economy is experiencing a sharp rise in the inflation rate, I will suggest to other members and recommend a contraction of the money supply by increasing the discount rate.
The discount rate refers to an interest rate that is charged when commercial banks borrow money from the Federal Reserve System.
Also, it is required of all banks in the United States to set aside a particular percentage of their deposits in reserve.
The Federal Reserve System was created in 1913 and it is the central bank of the United States. The structure of the Federal Reserve System is made of the Board of governors and 12 Federal Reserve banks
Some of the core functions of the Federal Reserve board include
- They regulate the money supply with monetary policy
- They control the affairs of the financial institutions
- They control the checking clearing procedures in both regional and national.
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Oligopoly
What is Oligopoly?
In Oligopoly markets, a limited number of suppliers control the market. They are present in every nation and a wide variety of industries. While some oligopoly markets are much more competitive than others, others can at least appear to be so. Investigations into allegations of coordinated behaviour or a lack of fierce competition are frequently requested from competition authorities.
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Answer:
The total cost of the units completed and transferred out of the department was: $324,900
Explanation:
First Calculate Total Cost per Equivalent Unit
Materials $2.00
Conversion $3.70
Total $5.70
Then, Calculate the Cost of Units Completed and Transferred
<em>Units Completed and Transferred × Total Cost per Equivalent Unit</em>
57,000 × $5.70
$324,900
Answer:
The statement is: False.
Explanation:
Non-manufacturing costs are those not related to the production process of the company. It implies costs useful for the operations of the firm but does not have an impact on the process of creating a final good. Administrative salaries, office supplies, and depreciation fall into this category.
Absorption costing describes an accounting approach in which all the manufacturing costs are assigned to the units produced.
Thus, as non-manufacturing costs are not related to the manufacturing process, they cannot be allocated within the units of production using the absorption costing method.
Answer:
C. The firm is profitable because profit equals $27,500.
Explanation:
For computing the profit, the following formula should be used
Profit = Total revenue - total cost
where,
Total revenue = Number of units sold × market price
= 20,000 units × $15
= $300,000
And, the total cost would be
= Labor cost of the firm + total capital stock × given percentage
= $248,500 + $400,000 × 6%
= $248,500 + $24,000
= $272,500
Now the profit would be
= $300,000 - $272,500
= $27,500
