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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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A company records an adjusting journal entry to record $10,000 depreciation expense. Which of the following describes the entry?
Pavlova-9 [17]

Answer:

(B) Debit Depreciation expense and Credit Property Plant and Equipment

Explanation:

the depreciation is the accrued expense recognize for the effect on time on the firm's assets. There is no cash involve in a depreciation It is an accounting expense. So A and C cannot be coorect.

As the depreciation is an expense, it will be debited. not credited. so D is incorect as well.

The net income is a figure which resumes the expenses and revenues of the company. It is not an account thus, it can't be debited or credited. Making E incorrect as well.

8 0
2 years ago
The Securities and Exchange Commission was a New Deal program designed to regulate __________. importing quotas farming practice
Softa [21]

The Securities and Exchange Commission was a New Deal program designed to regulate stock market.

<h3><u>Explanation:</u></h3>

The place where the trading of the public listed companies takes place refers to the stock market. This is a method that is used by the companies to raise the capital. Those companies that wishes to raise capital would be offering the shares to the public in general as an initial public offering. This is the place of meeting of the stock sellers and buyers.

The buyers of the stock market will try to get stocks at a reduced rate so that they can sell that for profits at later stages. The stocks can be considered as a smaller portion of ownership that a buyer can enjoy in a public company. A new deal program that is being designed for the regulation of the stock market is the Securities and Exchange Commission.

8 0
3 years ago
Read 2 more answers
The Math department also purchased a printer. After 4 years, it will have a salvage value of $200. A new printer is expected to
Aleksandr [31]

Answer:

determine the size of payments.

$202,42

Explanation:

Expected cost              2000

Salvage value old printer 200

         Cost requirement        1800

 

FVOrdinary Annuity​=C*(1+i)n-1/i  

1800=c*(1+3%)>8-1/i  

C=202,42  

N Monthly            % VF

0 202,4214999 1,00 202,42

1 202,4214999 1,06 214,57

2 202,4214999 1,12 227,44

3 202,4214999 1,19 241,09

4 202,4214999 1,26 255,55

5 202,4214999 1,34 270,89

6 202,4214999 1,42 287,14

7 202,4214999 1,50 304,37

6 0
3 years ago
a local pizza parlor is selling two different shapes of cheese pizza for the same price. You can get two small square pizza that
Mamont248 [21]

Answer:

The large round pizza with a 14 inch diameter

Explanation:

We can see this as a simple geometry problem. Which is the largest area? Two squares of 8 inches side or a 14 inch diameter circle? Let's see. The area of the square is side * side, in this case 8 * 8, so we have 64 squared inches  in each of the two pizzas. That makes a total of 128 squared inches (64 + 64) for the two small squared pizzas. Now to calculate the circle, we must do the following formula: \pi *r^{2} where r is the radium of the circle. The radium is half of the diameter, in this case 14/2=7. So the formula is 7^2, that is to say 49, multiplied by pi. This gives us approximately 153.93 squared inches, which is bigger than 128. A large round pizza with 14 inches of diameter gives more pizza.

We can also think that most people don't like the crust of the pizza. Two pizzas have more crust than one. So one pizza, besides being bigger, can save you to eat the crust and more cheese and sauce.

5 0
3 years ago
Suppose demand and supply are given by qxd = 14 - (1/2)px and qxs = (1/4)px - 1 instructions: enter your responses rounded to th
Ivenika [448]

Answer: Equilibrium price is $20 and equilibrium quantity is 4 units.

Explanation: Equilibrium is a situation of rest, a situation where demand for a good is equal to its supply. The price that balance demand and supply is known as the equilibrium price.

Q_{xd} = 14 - \frac{1}{2} P_{x}\\Q_{xs} = \[tex]Q_{xd} = Q_{xs}  14 - \frac{1}{2} P_{x} =   \frac{1}{4} P_{x}  - 1 14 + 1 = \frac{1}{4} P_{x} + \frac{1}{2} P_{x}   15 = \frac{3}{4} P_{x}  20 = P_{x}[/tex] =  Equilibrium price


Equilibrium quantity is given by,

Q_{xd} = 14 - \frac{1}{2} P_{x} = 14 - \frac{1}{2} * 20= 14 - 10= 4



4 0
3 years ago
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