Answer:The most important policy instrument.
Explanation:Inflation targeting is when the central bank of a country sets specific gradual rate for inflation.It does this in such a way that Inflation rate has a specific limit,this will make consumers think this increment will continue.
As prices rises,people buy more with the intention of selling later at an higher price.
If it is done right,it increases demand,lowers unemployment rate as industries increase their production capacity if demand is high.Inflation targeting usually boost economic growth.
Answer:
The correct answer is option D.
Explanation:
In 2008, as a financial crisis began to unfold in the United States, the FDIC raised the limit on insured losses to bank depositors from $100,000 per account to $250,000 per account.
During the financial crisis, there was a sense of panic. The regulators were concerned that depositors would expect their banks to crash and would fear that they may lose their money. The regulators expect the depositors to pull money back from their banks. The money supply will get reduced further. This will further reduce the money with banks. This could lead to even healthy banks to fail.
Raising the insurance limit would reassure depositors that their money was safe in banks and prevent a bank panic. This will further help to stabilize the financial system.
Answer: E. The firm's ability to differentiate its product
Explanation:
The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.
Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.
The demand of hurricane supplies goes down.
A savings account that pays interest every 3 months is said to have a tri-annual interest period.
