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Mrac [35]
3 years ago
14

Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp rise

in the inflation rate. What change in the Federal funds rate would you recommend? How would your recommended change get accomplished? What impact would the actions have on the lending ability of the banking system, the real interest rate, investment spending, aggregate demand, and inflation?
Business
1 answer:
monitta3 years ago
6 0

As a member of the Federal Reserve Board, in an inflationary situation I would suggest a change in the federal funds rate that would be accomplished by raising the base interest rate of the US economy. This would make bonds more attractive and people would stop consuming to invest in public debt securities. In addition, raising interest rates would discourage credit, causing banks to lend less. Since inflation is a monetary phenomenon caused by the excess of currency in circulation, these measures would have a downward effect on inflation, as they reduce the amount of money in circulation in the economy.

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One factor that influences the consumer decision-making process is __________, which refers to the set of values, attitudes, and
Ray Of Light [21]

Answer:

culture

Explanation:

culture: it is combination of values and moral that someone inherit from their forefather. it has very firm effects on decision making process. culture factors like occupation, economic background of consumer and lifestyle etc affect the decision of consumer. it is the value that passes from one generation to another.

culture is that stiff part of one life that cannot be change with time and more or less on the basis this consumer change its decision.

6 0
3 years ago
What kind of economy might a country have if it was influenced by Western thought
vova2212 [387]

Option;

A. communist

B. capitalist

C. democratic

D. republican

Answer: B. Capitalist

Explanation:

Capitalist economic system is one where the ownership and investment are distributed, the fluidity of her wealth and production which are made and maintained by individuals or corporation or by means of wealth which are state owned.

Example of capitalist countries include Switzerland, Australia, Estonia, Canada, United Arab Emirates amongst many others.

3 0
3 years ago
Please help a girl out. I will award brainliest.
SSSSS [86.1K]
The answer is C. “There is a major city 50 miles away from the region”.
7 0
3 years ago
Consider the following information about an asset that is being review for impairment: Book value $ 700,000 Estimate future cash
erastovalidia [21]

Answer:

The amount of the impairment loss for this asset is <u>$110,000</u>

Explanation:

A assets is impaired when the fair market value of that assets lowers than the book value of the asset.

To calculate the impairment of an assets following formula is used

Impairent = Book value of Asset -  fair market value of the asset

Placing values in the formula

Impairent = $700,000 -  $590,000

Impairent = <u>$110,000</u>

3 0
3 years ago
Multiple choice!
kodGreya [7K]

Answer:

Spillover cost.

Explanation:

Spillover cost refers to those costs or changes in the value of a certain good that are caused by issues external to the intrinsic characteristics of said good. Thus, for example, external influences such as limitations on oil extraction or the development of electric cars can generate a massive drop in the prices of conventional gasoline cars. Another clear example of this situation is the one described in the question, where a negative change in a certain neighborhood can lower the prices of the houses found there.

7 0
2 years ago
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