All categories

3 years ago

If Congress cuts spending to balance the federal budget, the Fed can act to prevent unemployment and recession by

Business

1 answer:

Mama L [17]3 years ago

3 0

Answer: C. Reduce interest rates by increasing the money supply

Explanation:

If the Fed hopes to prevent unemployment and recession it needs to stimulate the economy to produce more goods and services as this will stave off recession while reducing unemployment as people will be needed to produce those goods and services.

The Fed can increase money supply which will lead to interest rates decreasing. When this happens more companies and individuals will be able to borrow funds as the cost of borrowing is low. These funds can then be invested in projects to increase production in the economy.

You might be interested in

Zolol [24]

Policies related to setting interest rates, management of money supply, and the buying/selling of treasury bonds are referred collectively as <u>Monetary policy</u>

Monetary policy is primarily involved with the management of interest rates and the total pool of money in circulation and is generally taken out by central banks, such as the U.S. Federal Reserve.

<h3>What is monetary policy and fiscal policy?</h3>

Monetary policy refers to central bank activities that are headed toward influencing the amount of money and credit in an economy. By contrast, fiscal policy guides to the government's decisions about tax and spending. Both monetary and fiscal policies are used to control economic activity over time

To learn more about Monetary policy, refer

brainly.com/question/13926715

#SPJ4

8 0

2 years ago

Why are some producers forced to sell their products at the prevailing market price? Group of answer choices price takers find m

Crank

Some producers are forced to sell their products at the prevailing market price because of (C) a high degree of similarity to competitor's products.

<h3>What is the prevailing market price?</h3>

Prevailing Market Price refers to the market's published wholesale price and, in the absence of a declared wholesale price, the prevailing market price of any commodities.
The term "prevailing market conditions" refers to the average amount of rent paid by operators of similar sized and placed lodges throughout the country, as determined in good faith by the national protected area authority.
Because of their great degree of similarity to competitors' products, some producers are forced to offer their items at the prevailing market price.
The average wage paid to similarly employed workers in a certain occupation in the area of anticipated employment is described as the prevailing wage rate.

Therefore, some producers are forced to sell their products at the prevailing market price because of (C) a high degree of similarity to competitors' products.

Know more about market prices here:

brainly.com/question/24877850

#SPJ4

The complete question is given below:
Why are some producers forced to sell their products at the prevailing market price?

A. price takers find market analysis is too costly

B. they are very small players in the overall market

C. high degree of similarity to competitor's products

D. they can increase output without affecting the quality

8 0

1 year ago

You are scheduled to receive a $500 cash flow in one year, a $1,000 cash flow in two years, and pay an $800 payment in three yea

Sunny_sXe [5.5K]

Answer:

present value = $9320.06

Explanation:

given data

cash flow 1 year C1 = $500

cash flow 2 year C2 = $1000

pay 3 year C3 = $800

interest rates r = 10 percent per year = 0.10

solution

we get here present value that is

present value = $\frac{C1}{(1+r)} +\frac{C2}{(1+r)^2} +\frac{C3}{(1+r)^3}$ ....................1

put here value and we will get

present value = $\frac{500}{(1+0.10)} +\frac{10000}{(1+0.10)^2} +\frac{800}{(1+0.10)^3}$

present value = $9320.06

7 0

3 years ago

A gardener has three herb beds she wishes to plant in a design that consists of three equilateral triangles laid out in such a w

densk [106]

The design is shown in the attached picture. An equilateral triangle has sides that have equal measurements. On the other hand, a vertex is the terminal point of at least two line segments. Therefore, when you join three equilateral triangles sharing a common vertex, that simply means that they have a common point.

8 0

3 years ago

On March 1, a business paid $3,840 for a twelve-month liability insurance policy. On April 1, the business entered into a two-ye

Helen [10]

Answer:

a. Insurance expense for the month of march

= ($3,840 / 12 months) * 1 month

= $320 per month

b. Balance in prepaid insurance as of March 31

= ($3,840 / 12 months) *11 months remaining

= $3,520

c. Equipment rent expense for the month of April

= ($23,160 / 24 months) * 1 month

= $965

d. Balance in prepaid equipment rental as of April 30

= Nil ($0) as it is not mentioned that payment has been made, it is only mentioned that two year rental contract has been entered into.

4 0

3 years ago