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3 years ago

Which of the following statements help to explain why, in the real world, the Fed cannot precisely control the money supply?

Business

1 answer:

Rainbow [258]3 years ago

8 0

Answer:

The correct answer is option a and c.

Explanation:

The fed cannot control the money supply up to a great extent in the real world. This is because the feds can control the amount of required reserves that a commercial bank holds. But they cannot control the amount of excess reserves that a bank decides to hold which affects the money supply.

At the same time, the feds cannot control the amount of money that the households decide to hold as currency which also affects the money supply.

The amount of excess reserves a bank decides to hold affects the deposit-reserve ratio. While the amount of money that households decide to hold affects the currency deposit ratio. Both of these ratios affect the money supply.

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When Tim earned $65,000 he purchased 10 novels a year. His income has just increased to $68,000 and he plans to purchase 15 no

trasher [3.6K]

Answer:

8.88

Explanation:

Data provided in the question:

Initial income, I₁ = $65,000

Initial novel purchased, D₁ = 10

Final income, I₂ = $68,000

Final novel purchased, D₂ = 15

Now,

Tim's income elasticity of demand for novels will be

= $\frac{(\frac{D_2-D_1}{D_1+D_2})}{(\frac{I_2-I_1}{I_1+I_2})}$

on substituting the respective values, we get

= $\frac{(\frac{15-10}{10+15})}{(\frac{68,000-65,000}{65,000+68,000})}$

= [5 ÷ 25] ÷ [3,000 ÷ 133,000 ]

= 0.2 ÷ 0.0225

= 8.88

5 0

4 years ago

A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's

Umnica [9.8K]

Answer:

break even rate = $31000

ultra break even point = $62000

Explanation:

given data

total fixed costs = $1,612,000

solution

WE FIND HERE FIRST contribution margin that is

contribution margin for regular per unit = $20 - $8

contribution margin = $12

and

contribution margin for ultra = $24 - $ 4

contribution margin for ultra = $20

so if 1 unit of regular is sold

2 unit of ultra will sold here

contribution margin is here

contribution margin = ( $12 × 1 )+ ( $12 × 2 )

contribution margin = $52

and

break even point at commposite rate = total fix cost ÷ contribution margin rate at commposite rate

break even rate = $\frac{1612000}{52}$

break even rate = $31000

and

ultra break even point = 31000 × 2

ultra break even point = $62000

4 0

3 years ago

A business organized as a separate legal entity from its owners is a: Proprietor Partnership Government unit Corporation

Evgen [1.6K]

Answer:

Corporation.

Explanation:

A business organized as a separate legal entity from its owners is a corporation.

A limited liability company (LLC) can be a corporation and basically it refers to a private company in which the owners are legally responsible for the company's debts but only to the amount of capital he or she has invested. The LLC can be referred to as a hybrid business entity that combines the limited liability-shield of a corporation with the pass-through taxation of a sole-proprietorship or partnership business.

In the United States of America, the owner of a LLC is not legally liable for the company's liability or debts.

Additionally, it is very important that in the decision-making process, an organization consults a variety of its key or essential staffs such as managers, directors, stakeholders and executives. Furthermore, when the decision making process has been completed and a position taken, it is necessary that the organization communicates in clear and concise terms the details or parameters which influenced the choice to its audience such as investors, customers, employees etc.

3 0

3 years ago

Which of the following would be an example of mechanical convection?

sdas [7]

Hi!

Option A is correct.

In cooking, convection is the phenomena that causes molecules with a higher energy at the bottom of a container to travel upwards, and the molecules at the top with a lower energy to sink to the bottom and replace them.

Mechanical convection describes this phenomena as a result of the application of an external force.

This phenomena is restricted to substances that are in liquid, or gaseous state, as molecules of a substance in solid state have a very restricted movement.

Hence, options B, C and D are incorrect.

Hope this helps!

3 0

3 years ago

How does regional institutional complexity affect mne internationalization?

Vaselesa [24]

International business research is only beginning to develop theory and evidence highlighting the importance of supranational regional institutions to explain firm internationalization. In this context, we offer new theory and evidence regarding the effect of a region's "institutional complexity" on foreign direct investment decisions by multinational enterprises (MNEs). We define a region's institutional complexity using two components, regional institutional diversity and number of countries. We explore the unique relationships of both components with MNEs' decisions to internationalize into countries within the region. Drawing on semiglobalization and regionalization research and institutional theory, we posit an inverted U-shaped relationship between a region's institutional diversity and MNE internationalization: extremely low or high regional institutional diversity has negative effects on internationalization, but moderate diversity has a positive effect on internationalization. Larger numbers of countries within the region reduces MNE internationalization in a linear fashion. We find support for these predicted relationships in multilevel analyses of 698 Japanese MNEs operating in 49 countries within 9 regions. Regional institutional complexity is both a challenge and an opportunity for MNEs seeking advantages through the aggregation and arbitrage of individual country factors.

3 0

3 years ago