Answer:
D. agents will immediately adjust their expectations of inflation up.
Explanation:
Expansionary monetary policies are geared towards stimulating economic growth. The Fed can impose lower interest rates or purchase bonds and securities in open market operations as expansionary tools. Lowering interest rates encourages banks and other lending institutions to lend money to firms and households.
Purchasing bonds and securities adds money to the banking system. The increased money will be loaned out to businesses and individuals. The availability of low-cost credit motivates firms to borrow and expands their business capacities. When households borrow with ease, it leads to an increase in consumption expenditure. These actions result in too much money in circulation, which is inflation.
Answer:
break even is when an organisation doesn't make profit nor loss.
Answer: is based on when the asset is expected to be converted to cash, or used to benefit the entity.
Explanation:
Also known as a Short-Term asset, a current asset is an item of value that a company can either use or sale within a period to gain cash to clear current liabilities. Current assets can easily be converted to cash by sales or use.
Answer:
Reserve requirement = 40 / 300
Explanation:
Given:
Excess reserve = $5 million
Total deposit = $300 million
Total loan = $255 million
Computation of reserve requirement:
Reserve requirement = (Total deposit - Excess reserve - Total loan) / Total deposit
Reserve requirement = ($300 - $255 - $5) / $300
Reserve requirement = ($300 - $260) / $300
Reserve requirement = ($40) / $300
Reserve requirement = 40 / 300
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