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forsale [732]
3 years ago
15

Suppose that the bond market and the money market both start out in equilibrium, then the Federal Reserve increases the money su

pply. The result will be a ______________ in the money market and a _________________ in the bond market, which will push bond prices _________________ and interest rates will ___________________ until a new equilibrium is reached.
a) shortage; surplus; down; fall
b) surplus; shortage; up; fall
c) shortage; surplus; down; rise
d) surplus; shortage; down; rise
Business
1 answer:
Trava [24]3 years ago
4 0

Answer:

b) surplus; shortage; up; fall

Explanation:

If the bond market and money market start out at equillibrum, and money supply is increased there will be an excess (surplus) of money over bonds.

That is more money to buy less bonds. The relative scarcity of bonds will result in a shortage (bond supply cannot meet demand).

As a result of the shortage price of bonds will increase because more people are looking for the scarce bonds.

Price of bonds has an inverse relationship with interest. As price increases interest rates will fall.

For example consider a zero coupon bond of $1,000, being sold for low price of $850. On maturity it will yield gain of $150.

If the price rises to $950 the yield will only be $50.

So as price increases and interest (yield) decreases, it will no more be attractive to investors and demand will reduce to meet the available supply of bonds.

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Activity A B C D E F G H Time 5 3 7 6 7 3 10 8 a. Identify the critical path. b. How much time will be needed to complete this p
Svet_ta [14]

Answer:

Critical path = A-D-F-H

Duration = 22

Explanation:

Given:

Activity A B C D E F G H

Time 5 3 7 6 7 3 10 8

The objective is to identify the critical path and to find the time needed to complete this project

Solution:

The possible paths are as follows,

A-C-H = 5+7+8 =20

A-D-F-H = 5+6+3+8 =22

A-D-G = 5+6+10 = 21

B-E-G = 3+7+10 = 20

B-E-F-H = 3+7+3+8 = 21

a)

Critical is the path with the longest duration

Critical path =A-D-F-H

The duration is 22

b)

The duration to complete the project is as follows,

Duration = Length of critical path = 22

8 0
3 years ago
An increase in the demand for a good is represented by:
Oksanka [162]

2. A right shift to a new demand curve
3 0
3 years ago
For direct price discrimination to work a. ​The firm need not be able to identify the members of the low-value group b. ​The fir
MakcuM [25]

Answer:

The correct answer is letter "B": ​The firm be able to charge the low-value customers a lower price than the higher-value customers.

Explanation:

Price discrimination is the practice by which producers charge different prices to different consumers based on factors such as<em> age, income or location</em> to mention a few. This differentiation in prices is always justified by producers with one of those factors otherwise the approach would be considered illegal.

Direct price discrimination<em> is carried out when the firm charges lower prices to an unfavored sector of the market keeping the regular price in sectors where income is higher.</em>

6 0
3 years ago
The York Company has arranged a line of credit that allows it to borrow up to $64 milion at any time. The interest rate is .640
klio [65]

Answer:

8.46%

Explanation:

Monthly interest rate = 0.640%

Number of month in year = 12

Investment in non-interest bearing = 6%

Effective annual interest = [(1 + Monthly interest rate)^Number of month] - 1 / (1 - Investment in Non-interest)

Effective annual interest = [(1 + 0.640%)^12] - 1 / (1 - 6%)

Effective annual interest = (1.0064)^12 - 1 / 0.94

Effective annual interest = 1.07956187072 - 1 / 0.94

Effective annual interest = 0.07956187072 / 0.94

Effective annual interest = 0.084640288

Effective annual interest = 8.46%

Hence, the Effective annual is 8.46%.

7 0
2 years ago
The following information is available from the land account: Opening balance $270,000 Sold for $200,000 cash 170,000 credit ent
oee [108]

Answer:

a. cash received from sale of land, $200,000.

Explanation:

A statement of cash flows can be described as a financial statement that provides the summary of the amount of cash and cash equivalents that a company receives or pays during a particular period.

A cash flow statement presents how cash and cash equivalents are affected by changes in income and balance sheet accounts by breaking the analysis down to operating, investing, and financing activities.

As it can be seen above, investing activities is one of the three categories of activities that are reported in a statement of cash flows. Investing activities under the statement of cash flows therefore deals with the payments or receipts of cash and cash equivalents for the purchase and sale of long-term assets and other business investments during a particular period.

From the question, the only cash and cash equivalents transaction is the selling of land for $200,000 cash. Therefore, items in the Investing Activities section of the statement of cash flows should include cash received from sale of land, $200,000. The correct option is therefore a. cash received from sale of land, $200,000.

4 0
3 years ago
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