<span>After decreasing Nominal & Real GDP, the Federal Reserve will engage in Contractionary Monetary Policy. The answer is letter B. IF the Federal Reserve increases the amount of monetary growth, the economic theory shows that it will decrease in the short run but will increase eventually in the long run from their initial value.</span>
Answer:
b. Only Emerald Corporation's current ratio will be increased.
Explanation:
Given that
Emerald current ratio is
= 0.5 i.e. = 0.5 ÷ 1
now in case when the current liability is doubles , so the current assets is
= 0.5 + 1 = 1.5
And, the cuurrent liabilities is
= 1 + 1
= 2
so new ratio is
= 1.5 ÷ 2
= 0.75
Now
Ruby current ratio is
= 1.5
i.e. = 1.5 ÷ 1
Now in case when the current liability is doubled,
the current assets is
= 1.5 + 1
= 2.5
And, current liabilities is
= 1 + 1
= 2
Now new ratio is
= 2.5 ÷ 2
= 1.25
Therefore the emerald current ratio is rised from 0.5 to 0.75
And, the Ruby's ratio has decline from 1.5 to 1.25
Answer:
Change in M1 $400
Changd in M2 $0
Explanation:
The money which is been held by individuals in savings accounts is part of the M2 money supply, but its not part ofthe M1 money supply.
Hence when Jane withdraws $400 cash from her savings account,the M1 money supply will increases by $400. However, the M2 money supply does not tend to change reason been that the M1 money supply is included as part of the M2 money
Change in M1 $400
Changd in M2 $0
Answer:
The price level is A) Above equilibrium.
Explanation:
Normally, every economist believe that a lower price attracts a higher demand. This is so when the behaviour of consumers are measured when choosing a product. Many consumers go for a low priced product or cheaper product over a high priced product or expensive product irrespective of quality, taste or satisfaction derived from consuming them.
Price relating to market or in terms of quantity demanded and quantity supplied is referred to as equilibrium price or equilibrium quantity. When the market price is below equilibrium, quantity supplied of a product will be less than the quantity demanded for it because the price of goods are cheaper. But when price is above equilibrium, quantity supplied will be greater than quantity demanded because the price of goods is high.
