Rationing is is the act of Limiting the amount of certain goods that civilians can buy. Rationing became common during the Second World War. Ration stamps were often used. These were redeemable stamps or coupons, and every family was issued a set number of each kind of stamp based on the size of the family, ages of children and income.
Answer:
A. maximum employment and stable prices
Explanation:
The Fed has various roles. Among its key objectives is to monitor the economy to ensure maximum sustainable economic growth. To achieve this growth, the Fed uses different monetary tools to regulate inflation and influence unemployment levels.
The Fed receives economic data from other government agencies that help it determine the appropriate cause of action. For example, if the bureau of labor statistics reports a high level of unemployment, it could mean the economy is slowing down. The Fed then applies expansionary policies to stimulate growth. If inflation is low or very high, it affects price stability. The Fed has tools to regulate inflation.
Answer:
c. Fixed Cost = $300
Explanation:
Because marginal cost is constant we can find the variable cost per unit and then subtract the total variable cost from the total cost in order to find the fixed cost. The firms total cost increase $300 (from 1500 to 1800) when output increases by 10 units (from 40 to 50), so the variable cost per unit is 300/10=30.
Now to calculate the total variable cost we will multiply variable cost per unit by the number of units.
50*30= 1500
Now we will subtract 1500 from 1800 in order to find the fixed cost.
1800-1500=300
Fixed cost is $300.
The <em>federal reserve </em>affects money available for banks to loan by using the<u> reserve requirement</u> tool.
<h3>What is the reserve requirement in monetary policy? </h3>
Reserve requirement is said as the set-aside funds by the commercial banks that they utilize for meeting their liabilities and instant withdrawal from customers.
Therefore, when Fed increases the rate of <em>reserve requirement</em> then banks need to hold the <u>large amount </u>which reduces their ability to loan more funds. It ultimately reduces the money supply and <em>vice-versa</em>.
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