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Anettt [7]
3 years ago
12

The Fed has decided to expand the money supply, leading to lower interest rates. As a partner in a tech start-up, you react to t

hese lower interest rates by deciding to expand your operations and begin marketing your new artificial intelligence prototype. What impacts would this decision have on the macroeconomy? Choose one or more: A. reducing unemployment B. raising GDP C. decreasing aggregate demand D. increasing the investment part of GDP E. increase net imports
Business
1 answer:
Alona [7]3 years ago
8 0

Answer:

A, B and D

Explanation:

Expanding the money supply is an exercise of expansionary monetary policy.

This decision will first allow our tech startup to acquire cheaper loans and expand our operations, this expansion in operations will result in new employment opportunities and hence as a result, unemployment will be reduced assuming this is a general trend in the economy.

This decision also directly reflects an increased investment and hence the GDP on the whole and the investment part of GDP would both increase,

GDP = C + I + G + (X - M), where I = investment.

This change in macro economy will increase aggregate demand due to expansionary effects. Increase in imports is not conclusive as it may or may not happen depending upon the demand state.

Hope this helps.

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An equipment cost $80,000 initially. The market value has been declining at the rate of $15,000 yearly. The O & M costs in y
Oksi-84 [34.3K]

Answer:

D.5 years

Explanation:

Annual Depreciation = Cost/Useful life

$15,000=$80,000/Useful life

Useful Life=$80,000/$15,000

Useful Life=5.33

8 0
3 years ago
Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:
mel-nik [20]

Answer:

Materials Cost Variance = 6500 favorable

Explanation:

Frogue Corporation

AP= Actual price per kilogram $2.50

AQ= Actual kilograms of material used 31,000

SP = Standard price per kilogram $2.80

SQ= Standard kilograms per completed unit 6 kilograms = 5000 units *6 kg= 30,000 kg

Material Price Variance =( AP -SP)(AQ)=

                                  =  ( $2.50- $2.80)31,000 = 9300 Favorable

It is favorable because the standard price is higher than the actual price.

Material Quantity  Variance  =( AQ -SQ)(AP)=  (31000- 30,000) 2.8

                                               = 1000*2.8=  2800 unfavorable

It is unfavorable because the standard quantity is lower than the actual quantity.

Materials Cost Variance =Material Price Variance+Material Quantity  Variance

                                      =9300 Favorable+2800 unfavorable=

Materials Cost Variance = 6500 favorable

When favorable and unfavorable are added the unfavorable is with negative sign so they are subtracted.

8 0
3 years ago
Other things the same, as the price level decreases it induces greater spending on a. both net exports and investment. b. net ex
Marina CMI [18]

Answer:

Here the correct option is A) both net export and investment.

Explanation:

When ever there is fall in the price level, it causes a fall in the price of domestic exports to other nations and on the other hand causing rise in price of foreign imports from other nations , so from this it results in the increase in exports and decrease in import of the nation, which leads to increase in net export ( which is export - import ). When there is decrease in price level,  making investment would become cheaper and more investment could be made in the opportunities available.

3 0
3 years ago
Which of the following is a type of advertising?
inysia [295]

Answer:

C

Explanation: I think its C cause it just makes sense lol

7 0
3 years ago
Read 2 more answers
Which step in the product development process involves announcing a new
Scorpion4ik [409]

Answer:

D

Explanation:

announcing the product takes place in the commercialization and launch of the product

5 0
3 years ago
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