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
umka21 [38]
3 years ago
7

Suppose that the Fed has decided to utilize the Taylor rule to implement monetary policy. If the actual federal funds rate targe

t is presently below the level specified by the Taylor rule and has been lower then this level for several weeks, then this would be a signal thatA) monetary policy is very expansionary.B) monetary policy is very contractionary.C) the Fed should switch to targeting the money supply instead of the federal funds rate.D) the Fed should halt efforts to target the money supply.
Business
1 answer:
spin [16.1K]3 years ago
5 0

Answer:

The correct answer is:

A) monetary policy is very expansionary.

Explanation:

In this case the Taylor Rule states that the Fed must increase rates as the target of the inflation is up the Gross Domestic Product. Therefore, according to the expansionary policy, the central bank employs certain mechanisms in order to look with favor on the economy. The main idea of this strategy is to be able to lower the interest rates and also to increase the aggregate demand.

You might be interested in
g Suppose that if GSI drops the price on the Glucoscan 3000 immediately, it can increase sales over the next year by 30% to 130,
Amanda [17]

Complete Question:

Glucose Scan Incorporated (GSI) currently sells its latest glucose monitor, the Glucoscan 3000, to diabetic patients for $129. GSI is considering lowering the sale price to $99 per unit. The cost of goods sold for each Glucoscan unit is $50, and GSI expects to sell 100,000 units over the next year. The marginal corporate tax rate is 40%. Suppose that if GSI drops the price on the Glucoscan 3000 to $99 immediately, it can increase sales over the next year by 30% to 130,000 units.

Also suppose that for each Glucoscan monitor sold, GSI expects additional sales of $100 per year on glucose testing strips and these strips have a gross profit margin of 75%. These strip sales occur on all monitor sales regardless of the price of the monitor. Including the increase in the sale of testing strips, the incremental impact of this price drop on the firms EBIT is closest to:

Answer:

$720,000

Explanation:

Incremental Earnings Before Interest and Tax Analysis  

Details                                         Current price               Reduced price

Units Sold                                        100,000                         130,000

Unit sales price                            <u>       129          </u>                <u>         99        </u>

Sales Revenue                             $12,900,000                 $12,870,000

Cost of Goods sold at $50            <u>5,000,000</u>                  <u>$6,500,000</u>

Gross Profit                                    $7,900,000                  $6,370,000

G. Profit on Strips sold at $75      <u>$7,500,000</u>                  <u>$9,750,000</u>

Total Gross Profit for the year      $15,400,000                $16,120,000

The Net benefit of this price change is increase of Earnings before interest and tax by $720,000.

3 0
3 years ago
Suppose a firm in each of the two markets listed below were to increase its price by 25 percent. In which pair would the firm in
Nadusha1986 [10]

Answer:

The correct answer is <em>corn and satellite radio.</em>

Explanation:

The price effect is the change in the quantity demanded of a good (or service) when its price is modified, while the rest of the variables remain constant (other prices, income or preferences among others).

When the price of a good changes, the conditions in which a particular consumption basket was chosen change. Given the above, the consumer will have to reevaluate his choice and will probably have to vary the quantity demanded of the goods that make up his shopping basket.

Thus, for example, if the price of one of the goods falls, the consumer sees his budgetary restriction modified and can look for a new optimum in a higher indifference curve. On the contrary, if the price of one of the goods increases, the budget line changes but now the consumer can only aspire to a lower indifference curve. In addition, given a price change, the relative prices of goods also change.

5 0
3 years ago
10. Suppose the world price of coffee is $3 per pound and Brazil’s domestic price of coffee without trade is $2 per pound. If Br
aleksklad [387]

Answer:

no

Explanation:

no ondjdjskaoaoskkd

6 0
2 years ago
Which of the following re-establishes the industry/DoD exchange of Logistics Support Analysis Record (LSAR) data in a common for
klemol [59]

Answer:

This re-establishes the industry/DoD exchange of Logistics Support Analysis Record (LSAR) data in a common format:

a. GEIA-STD-0007

Explanation:

The GEIA-STD-0007 standard is designed to provide users with a uniform set of data tags for all or portions of logistics product.  It can be used by government establishments and businesses.  The standard defines logistics data generated during the requirement definition and design of an industry or government system, as part of the Logistics Support Analysis Record (LSAR), in a common format.

3 0
3 years ago
funcycle manufacturing's budget includes the following credit sales for the current year: september, $146,000; october, $137,000
iragen [17]

The Cash Collection from the Credit sales in the Month of December is $130,300.

Credit (from the Latin verb credit score, which means "one believes") is the agree with which permits one party to offer money or resources to any other celebration in which the second birthday celebration does not reimburse the primary birthday party at once (thereby producing a debt), however, guarantees both to repay or go back those resources (or different substances of identical price) at a later date. In different words, credit is a method of making reciprocity formal, legally enforceable, and extensible to a massive organization of unrelated humans.

The assets provided may be financial (e.g., granting a loan), or they'll encompass items or offerings (e.g., client credit score). credit score encompasses any shape of the deferred fee. a credit score is extended by means of a creditor, also called a lender, to a debtor, additionally called a borrower.

To learn more about Credit visit here:

brainly.com/question/1590835

#SPJ4

7 0
1 year ago
Other questions:
  • On October 10, a company paid $36,000 to a supplier. Of that amount, $6,000 was for supplies received on October 10 and $30,000
    11·1 answer
  • Identify the framework for the entire accounting process and describe its components and how they fit together to form this fram
    8·2 answers
  • What can you expect when you ask clients for testimonials?
    8·1 answer
  • The United States and the European Union are groups of semi-independent states that have come together under an agreement whereb
    10·2 answers
  • Which coverage is not included in a typical renter’s insurance policy?
    11·1 answer
  • Meredith, the General Manager at Gladfle Inc., is planning to use certain new strategies to control and reduce the health care b
    10·1 answer
  • What do we call computerized machine that allows Bank customers to perform transitions​
    14·2 answers
  • A primary function of the promotional mix is to Multiple Choice explain how to use a product. persuade consumers to try a produc
    14·1 answer
  • What is a bank??????????
    15·2 answers
  • If a corporation pays $3 per share in annual dividends for each of the ten shares you purchase for $50 each what is the ROI
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!