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3 years ago

7

The purpose of a restrictive monetary policy is to:a. reduce borrowing costs b. stimulate spending curb c. rising prices and ove

rexpansion d. stimulate employment

1 answer:

katovenus [111]3 years ago

5 0

Answer:c. Curb rising prices and overexpansion

Explanation:

Restrictive monetary policy is enacted by the Central bank to reduce money supply, curb rising prices and overexpansion.

I hope my answer helps you

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In a command economy, decisions about which goods are produced are based on:

Gemiola [76]

Answer:

public sector is the answer because it's right

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Two types of value that are often contrasted are subjective value and: Group of answer choices A. inherent value B. reproduction

Ilia_Sergeevich [38]

Answer:

The correct answer is letter "C": objective value.

Explanation:

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A dollar available today is always worth more than a dollar not available until a future period.

Lostsunrise [7]

Answer:

The statement is: True.

Explanation:

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A group of researchers wanted to determine if people will eat more food in a room with red paint and red decorations than in a r

GREYUIT [131]

I guess the correct answer is the color of the decorations in the room

A group of researchers wanted to determine if people will eat more food in a room with red paint and red decorations than in a room that is decorated blue. Half the participants in this study ate in a red room and half ate in a blue room. The researchers then measured how much food was consumed in each of the two rooms. In this study, the independent variable was the color of the decorations in the room.

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3 years ago

You observe that the inflation rate in the United States is 1.0 percent per year and that T-bills currently yield 1.5 percent an

Vedmedyk [2.9K]

Answer:

a) 4.5%

b) 7.5%

c) 9.5%

Explanation:

Given:

USA Inflation rate = 1.0%

T-bills current yield = 1.5%

a) What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year?

To find the inflation rate in Australia, use the formula:

RUS - hUs = RFC - hFC

Where,

RUS = T-bills current yield = 1.5% = 0.015

hUs = USA Inflation rate = 1.0% = 0.01

RFC = short-term yield of Australian government securities = 5% = 0.05

Thus,

RUS - hUs = RFC - hFC

0.015 - 0.010 = 0.05 - hFC

0.005 = 0.05 - hFC

Solve for hFC:

hFC = 0.05 - 0.005

hFC = 0.045 = 4.50%

Inflation rate in Australia = 4.50%

b) What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 8 percent per year?

Use the same formula as in part A.

RUS - hUs = RFC - hFC

Here, RFC = 8% = 0.08

Thus,

0.015 - 0.010 = 0.08 - hFC

0.005 = 0.08 - hFC

Solve for hFC

hFC = 0.08 - 0.005

hFC = 0.075 = 7.50%

Inflation rate in Canada = 7.5%

c) What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 10 percent per year?

Use the same formula as in part A.

RUS - hUs = RFC - hFC

Here, RFC = 10% = 0.1

Thus,

0.015 - 0.010 = 0.10 - hFC

0.005 = 0.10 - hFC

Solve for hFC

hFC = 0.10 - 0.005

hFC = 0.095 = 9.50%

Inflation rate in Taiwan= 9.5%

8 0

3 years ago