Banks subject to reserve requirements set by the federal reserve system include

If the Dow Jones Industrial Average is 3.2% down that means that: Question 10 options: The stocks of all the companies in Dow Jo

Vera_Pavlovna [14]

Answer:

b). The average value of the 30 blue-chip stocks is down by 3.2%.

Explanation:

'Dow Jones Industrial Average' also known as 'DJIA' is characterized as the standard indicator to denote the stock-market prices of the shares of the major companies associated with blue-chip in the United States.

As per the question, a down or fall in DJIA by 3.2% would indicate that the stock prices of the companies trading with 'blue-chip' have faced a reduction in their share prices by 3.2% for that day. So, this allows the investors to keep a check on the stock prices and invest accordingly whenever they find it profitable. Thus, <u>option b</u> is the correct answer as the other options fail to convey this idea rather they either talk about the loss of value instead of decrease(in options a and c) or disassociates the entire concept with the stock market(in option d).

5 0

3 years ago

Suppose the economy is operating at an output level of $5,400 billion. Assume furthermore that potential output is $5,000. Which

olga2289 [7]

Answer:

The government should decrease spending by $100 billion.

Explanation:

The potential output level of an economy is $5,000 billion.

The economy is operating at an output level of $5,400 billion.

We see that there is an inflationary gap of $400 billion as the economy is operating at an output level of $400 billion more than the potential output level.

The marginal propensity to consume is 0.75.

ΔY = $\frac{1}{1 - MPC}\ \times\ \Delta G$