1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
The more illiquid something is the easier it is to turn into cash.<br><br> true or false?
k0ka [10]

Answer:

False

Explanation:

Illiquidity in the context of a business refers to a company that does not have the cash flows necessary to make its required debt payments, although it does not mean the company is without assets. 

4 0
3 years ago
Brokerage firms make their profits primarily in which of the following ways? A) Consumer deposits. B) Government deposits. C) Di
Anastasy [175]
Brokerage firms make their profits primarily in : D. Fees commissions on sales or transfers

to put it simply, A brokerage firm is a financial institution that facilitates the selling process of stock/securities between the buyer and the seller. From each transaction that happen, a brokerage firm will receive a commission from its client.

hope this helps
5 0
3 years ago
Read 2 more answers
Which of the following can result from inflation in the United States?
Semenov [28]

Answer:

b. Investors buy products in other countries.

Explanation:

Inflation causes higher cost of production for manufacturer which then charge high cost for the products. Thus, if there is inflation in US, product cost will skyrocket thus companies will buy products from other countries where the product might be at a cheaper cost.

4 0
2 years ago
When stimulated by _____, arterioles supplying the digestive system ______, which decreases blood flow to digestive organs.
denis-greek [22]

When stimulated by sympathetic nervous, arterioles supplying the digestive system constrict, which decreases blood flow to digestive organs.

The respiration machine works immediately with the circulatory machine to offer oxygen to the body. Oxygen taken in from the respiration machine movements into blood vessels that then circulate oxygen-wealthy blood to tissues and cells. These consist of arteries consisting of the femoral and coronary arteries. The partitions of those arteries have masses of easy muscle, this means that that they may be capable of settlement or relax (dilate) to extrude the quantity of blood delivered, as needed.

Learn more about supplying here:

brainly.com/question/25646504

#SPJ4

6 0
1 year ago
Problem 5-35 Comparing Cash Flow Streams [LO 1] You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They
Minchanka [31]

Answer:

PV of 1st option = $185,015.50

PV of 2nd option = $192,683.78

Explanation:

Computing the present value of the monthly payments, we use the formula PV = \frac{A(1-(1+r)^{-n}) }{r}

Where PV = present value of the monthly payments

A = monthly salary

r = monthly interest rate = 6%/12 = 0.5% = 0.005

n = number of months = 24 months

PV of the 1st option, $8,200 monthly for the next 2 year

PV = \frac{8,200(1-(1.005)^{-24}) }{0.005} = $185,015.50.

PV of the 2ns option, $6,900 monthly + $37,000 signing bonus

PV = \frac{6,900(1-(1.005)^{-24}) }{0.005}+37,000 = $155,683.78 + $37,000 = $192,683.78.

7 0
3 years ago
Other questions:
  • Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1
    6·1 answer
  • Find 1 or 2 examples from this historically significant persuasive speech where President Reagan attempts to strengthen or
    10·1 answer
  • On theShopping Listsheet, check all the formulas. Cells to check are filled with the light orange color.Most of them need to be
    9·1 answer
  • A firm produces three types of computers (small, medium, and large). Demand for the computers is such that 100 small, 200 medium
    6·1 answer
  • What is management and leadership​
    15·2 answers
  • A policy that changes the natural rate of unemployment changes: a. neither the long-run Phillips curve nor the long-run aggregat
    6·1 answer
  • Jones Company issued $500,000 of 5%, 10-year bonds payable at a price of 92. The market interest rate on the date of issuance wa
    10·1 answer
  • Define the word buffer in entrepreneurship ( business ) form .
    10·1 answer
  • What does it mean when earned value is above planned value?
    12·1 answer
  • quizlet the office for civil rights (ocr) has enforcement power for violations occurring as a result of willful neglect. the ocr
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!