1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
FrozenT [24]
3 years ago
14

Using aggregate supply and demand curves drawn according to the Keynesian view, which of the following will occur if the Fed buy

s bonds in the open market and the economy is below full employment?a. Aggregate demand will shift to the left and unemployment rate will rise
b. Aggregate demand will shift to the right and the unemployment rate wil lfall
c. Aggregate demand will shift to the left and the price level will remain unchanged.
d. Aggregate demand will shift to the right and the price level will fall.
Business
1 answer:
rewona [7]3 years ago
6 0

Answer:

a. Aggregate demand will shift to the left and unemployment rate will rise

Explanation:

Aggregate demand (AD) is the sum of consumer spending, government spending, investment, and net exports. The AD curve assumes that money supply is fixed. Increased money supply causes reduction in interest rates and further spending and therefore an increase in AD.  <u>On the other hand, decreased money supply causes increase in interest rates and therefore a decrease in Aggregate Demand</u>

<u>Since the FED is buying Bonds it is reducing money supply and hence aggregate demand will fall causing the curve to shift to the left.</u>

Secondly inflation and unemployment has an inverse relationship. More money in the economy is inflation and unemployment level will be low because there will be an increase in wages <u>BUT when the FED reduces money supply by buying bonds, as a means of countering inflation, then unemployment will rise.</u>

You might be interested in
Rugrat Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory $190,000
inessss [21]

Answer:

$140,000

Explanation:

The  difference between operating incomes under absorption costing and variable costing based on fixed expenses is shown below:

Variable costing:

Fixed manufacturing overhead in production $750,000

Absorption costing:

The Fixed cost would be

= Beginning fixed manufacturing overhead in inventory + Fixed manufacturing overhead in production - Ending fixed manufacturing overhead in inventory

= $190,000 + $750,000 - $50,000

= $890,000

So, the difference would be

= $890,000 - $750,000

= $140,000

8 0
3 years ago
Which of the following is an common factor of failure for small businesses
Alex777 [14]

A few of the following can be considered major factors in failure of small businesses:

-Lack of financial planning: when a business is born it needs to critically plan out the first few years of running. Small business often fail to plan out for the future and have less working capital at hand.

-Lack of expertise: small business cannot afford specialist managers and this may be a reason for failure

-no investment in marketing and research can also be a reason.


6 0
3 years ago
Electronic audio and video devices are never used by terrorists for surveillance purposes. true or false
hammer [34]

The answer would be false. Since they are terrorists, they would likely scheme and plot in ways where they won’t get caught so it is likely that they will use devices in monitoring their surroundings in a way of helping them carry out their plans, devices they use may be electronic audio and video devices which could be seen in the statement above.

5 0
3 years ago
When undertaking social initiatives, a company: a. Must take out social responsibility insurance. b. Will always receive long-te
miskamm [114]
The correct answer is 5
4 0
3 years ago
What should an adjustment letter focus on?a. Explaining the resolution to the problem b. Preventing a recurrence of the problem
ivanzaharov [21]

Answer:

The correct answers are letters "A", "B", and "C":  Explaining the resolution to the problem; Preventing a recurrence of the problem; Communicating compliance.

Explanation:

Adjustment letters are communications with legal nature from companies to customers who filed a claim. The main purpose of the letter is to politely <em>inform the client that the claim was received, what steps were taken to analyze the situation, what is the final resolution after the study </em>and <em>what will be done as a result</em>. The ultimate goal of the adjustment letter is to <em>keep a good relationship with the customer so they can continue doing business</em>.

8 0
3 years ago
Other questions:
  • You are given the following information on Parrothead Enterprises: Debt: 9,200 6.4 percent coupon bonds outstanding, with 23 yea
    13·1 answer
  • What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance acc
    5·1 answer
  • If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he ne
    11·1 answer
  • XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was
    14·2 answers
  • Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to increase
    15·1 answer
  • Under cash-basis accounting, if a company provides services to a customer in the current year but does not collect cash until th
    7·1 answer
  • Hill Enterprises wants to replace two old assembly machines with one new, more efficient assembly machine. The old machines are
    13·1 answer
  • What's the catch with many services promoting a “free credit score?"
    6·1 answer
  • A promotional tool in which a company lets consumers have a small sample of a product for no charge is known as?
    14·1 answer
  • ________ conservation involves the sampling, transferring, and storage of a species in a place other than the original location
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!