Answer:
Businesses borrow more money.
Consumption increases.
Explanation:
The Federal Reserve is the body responsible for conducting monetary policy in the US. Monetary policy basically consists of two actions. The increase / decrease in the money supply in the economy and the increase / decrease in the interest rate. These actions may happen together, but they are technically independent.
When the Federal Reserve increases the supply of money in circulation, more money is circulated through loans and personal spending. This is considered a policy of stimulating the economy and can be done independently of interest rate changes, although the reduction of interest is also a stimulus monetary policy that can be done in conjunction with the increase in the money supply.
If a nation's currency drops in value significantly, the International Monetary Fund could step in and buy the currency so that some stability could occur economically
Answer:
Case 1 = $420 million
Case 2 = $280 million
Case 3 = $350 million
Explanation:
As per the data given in the question,
Annual value by one distributor = $420 million per year
Annual value by two distributor = $560 million per year
Case 1)
The marginal value of first distributor is more than second
So when negotiating the value, it is = $560 million - $420 million = $140 million
and this value would be distribute between both. so each will get = $140 million / 2 = $70 million
and you would expect to capture $420 million of this deal
Case 2)
As distributors are run by government, so negotiation will be done with both the distributor at same time and margin would be $560 million and you would be grabbed = $560 million ÷ 2 = $280 million
Case 3)
In this case marginal amount of contact = $560 million - $140 million = $420 million
and half of it = $420 million ÷ 2 = $ 210 million, which is the amount to be offered
and you would expect to grab the remaining amount = $560 million - $210 million
= $350 million
Answer: $2,250
Explanation:
The Tax-Payer uses a cash-basis. This means that they recognize revenue or expenses only when they are actually paid as opposed to an Accrual basis entity that recognizes revenue or expenses when it is incurred.
As the Cash-Basis taxpayer is the majority shareholder of the company, Stone may not deduct the amount from income until they have paid the tax payer because tax regulations state that when an Accrual Basis entity owes a majority owner who uses the Cash basis, they may not recognize the deduction until they have paid the owner.
In year 2 they paid ½ of the rent which is,
= 4,500/2
= $2,250
They can therefore only deduct $2,250 in Year 2.
Answer: D) economies of scale.
Explanation:
Economies of scale refers to when an entity is able to reduce its total costs as quantities of the good causing the costs increase.
Financial Intermediaries such as Commercial banks, Mutual funds, Investment banks etcetera have a lot of funds available for trade which they use to execute large trades. As a result, the costs on average are lower or them per transaction as opposed to traders executing with lower volumes. For example, when purchasing shares they will be able to negotiate better fees with stockbrokers because they are buying a lot of shares as opposed a single buyer trading.
