Answer:
In times of economic downturns to stimulate growth
Explanation:
Open market operations are one of the monetary policies used by the Fed to regulate the money supply in the economy. They involve buying and selling treasury bills to the banks and other financial institutions. Open marker buys, and lowering of interests are expansionary policies used to stimulate economic growth.
By buying treasury bills, the Fed adds money to the banks. Banks exchange treasury bills for liquid cash. As a result, banks end up with excess money in their custody. To make profits, the bank lends out this money to firms and individuals at competitive rates. The availability of easy and low-interest credit encourages borrowing for investments and consumption. Increased economic activities accelerated economic growth. Lowering of discount rates makes loans cheaper, thereby encouraging borrowing.
Meanwhile, other websites utilise the homepage to attract users to create an account.
Answer:
Threat of substitute product
Explanation:
Threat of substitute product is one of the Porter's model that explains the impact of alternative product in a competitive market.
Alternative products are similar goods that are similar in quality and function compared to an existing product.
A customer can easily swap his choice for an alternative product more in a situation that there are favorable price differences as he believes that he will be able to derive the benefit of the goods purchased at a lower cost.
Answer:
No, he doesn't show diminishing marginal utility. Yes, he shows increasing marginal utility for Coke.
Explanation:
The law of diminishing returns states that the marginal or addition satisfaction or utility derived from the consumption of a product increase until a pint and then starts to decrease.
Units Total utility Marginal utility
1 10 10
2 25 15
3 50 25
After 3 bottles, John does not show diminishing marginal utility as the marginal utility (as shown above) continues to increase with each additional bottle of coke consumed.