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aalyn [17]
4 years ago
7

Interest rates can be measured more accurately and quickly than reserve aggregates; hence an interest rate is preferred to the r

eserve aggregates as a policy instrument.
a. True
b. False
Business
1 answer:
7nadin3 [17]4 years ago
7 0

Answer:

False

Explanation:

This is false.

In reporting reserves aggregate there are lags interest rate such as the federal interest rate are quite easy to measure and easily observable. Such short term interest rate are nominal values and they do not measure the real cost of borrowing well. It does not show accurately what happens to Gross domestic product. Real interest rate equals nominal interest rate as a ratio of reduced inflation gives a representation of true cost of borrowing.

We cannot say with certainty that interests rate is a better policy instrument based on the ground of measurability.

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If Farmer Jane's opportunity cost of producing corn is lower than Farmer John's, she has a(n) ___________ in producing corn.
allochka39001 [22]

Answer:

b. comparative advantage

Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

For example, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.

In this scenario, Farmer Jane's opportunity cost of producing corn is lower than Farmer John's, therefore, she has a comparative advantage in producing corn.

Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.

Hence, the comparative advantage gives an individual or country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.

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7 0
4 years ago
If x times y equals 5023.21 then what does xy times
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<h3><u>Explanation:</u></h3>

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