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Mashcka [7]
3 years ago
8

Suppose the European Central Bank (ECB) decides to use monetary policy to offset the possible inflationary effects of European e

xpansionary fiscal policy. Would the ECB expand, contract, or not change the European money supply?
Business
1 answer:
Grace [21]3 years ago
7 0

Answer:

the European Central Bank (ECB) should engage in a contractionary monetary policy

Explanation:

A contractionary monetary policy takes place when a central bank (or the Fed) reduces the money supply in order to cool down the economy, lower inflation rate or like in this case, wants to offset expansionary fiscal policy.

The central bank initially raises the interest rates and starts selling more securities in order to absorb cash from the markets.

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4 0
2 years ago
Kevin Bacon is thinking about buying an investment. The investment option that he is thinking about buying is a written pledge b
Lesechka [4]

Answer:

Kevin is thinking about purchasing a corporate bond

Explanation:

Corporate bonds are bonds issued by firms.

Firms have two major instruments to attract investments from individual investors like Kevin: stocks and bonds.

Stocks are ownership certificates, their values and payouts fluctuates.

Bonds are debt certificates. Issuing them means the firms are obliaged to pay the interests until maturity and the face value of the bond at maturity.

6 0
3 years ago
One of the great dangers in allocating common fixed Blank 1 of 1 costs is that such allocations can make a product line look les
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Answer:

One of the great dangers in allocating common fixed corporate costs is that such allocations can make a product line look less profitable than it really is.

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Therefore, care must be exercised so that a product line is not eliminated because the common fixed costs have been allocated to it such that it becomes unprofitable.  This is why it is necessary to identify activity cost pools into which such fixed costs can be accumulated and from which they can be allocated to product lines.  Using ABC costing approach, for instance, offers a means of escape because the system tries to allocate costs based on the level of usage or consumption of such common costs by each product line instead of using arbitrary allocation formulas.

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What is a key factor you should consider when determining asset allocation
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Answer: Did u find out the anser?

Explanation: Im taking the quiz now

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What is the acronym for the rainbow
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Answer:

roygbiv

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roygbiv

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