Answer:
Minimum Transfer Price is $3.50
Explanation:
The Minimum transfer price is calculated by adding the variable cost per unit with the opportunity cost. In this case where the clock division is not operating at full capacity then the opportunity cost would be considered as $0.
Moreover, the division would be able to avoid a $0.5 cost per clock. Therefore, the variable cost will be $3.50 ($4 - $0.5) after eliminating the $0.5.
Finally, the minimum transfer would as follows:
Minimum Transfer Price = Variable cost + Opportunity Cost
Minimum Transfer Price = $3.50 + $0
Minimum Transfer Price = $3.50
Answer:
see below
Explanation:
The government takes contractionary measures to check against rising inflation. Contractionary policies reduce liquidity in the market, thereby reducing the rate of money circulation.
<u> Four measures that may control inflation include</u>
1<u>. Increasing interest rates</u>: An increase in interest rates increases the cost of borrowing money. When the cost of money becomes expensive, firms and households reduce the borrowing rate, reducing the money supply rate. In turn, the inflation rate declines.
2. <u>Increasing reserve requirement:</u> Reserve is the proposition of customer discounts that commercial banks are expected to maintain at their custody at all times. Increasing the reserve requirement means banks will reduce lending, thereby reducing the money supply in the economy.
3. <u>The open market sells</u>: The government makes available many treasury bills and bonds for purchase in the market. It offers attractive rates that encourage banks and other institutions to buy them. Buying the treasury bills means banks will use a substantial percentage of customer deposits on treasury bills other than lending to customers. Open market sales mop up excess liquidity in the markets, reducing the rate of cash circulation.
4. <u>Reduction of government spending:</u> Government spending is a fiscal policy tool. The government is a big spender in an economy. If the level of spending is decreased, the money supply in the economy is reduced.
Answer: Creating liquidity
Explanation:
Depository institutions includes commercial banks, credit unions, savings and loans. Depository institutions receive money from the depositors and lend out to their borrowers.
The primary function of the depository institutions is to create liquidity by making credit available to borrowers in the form of loans. Depository institutions also receive deposits from their customers in exchange for interest and then use them to create loans for people.
Answer:
I believe it is progressive taxes.
Explanation:
Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability insurance taxes, also known as social security taxes, and the hospital insurance tax, also known as Medicare taxes.
It can influence it to be better
