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
The amount of money you can charge yo a credit card is called
Pani-rosa [81]
The answer is credit limit
8 0
3 years ago
Read 2 more answers
If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable compet
balu736 [363]

Answer:

resources that are valuable, rare, costly to imitate, and non-substitutable

Explanation:

If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable competitive advantage through product excellence. A firm can, however, develop an advantage through product excellence with resources that are valuable, rare, costly to imitate, and non-substitutable

Apart from product excellence, Intangible assets that have no physical presence like Brand reputation, trademarks and intellectual property are all intangible assets unlike physical resources, cannot buy from the market by other competitors. They are developed within a company and constitute the source of sustainable competitive advantage.  

In particular, the resources that generate competitive advantage are those that possess the VRIO characteristics,which implies that they are  

Valuable, hence there will be no competitive disadvantage

Rare, hence there will be no competitive parity

Imitate, - are costly and difficult to imitate hence they cannot be copied

Organised to Capture Value - which means they are non-substitutable.

4 0
3 years ago
For a recent 2-year period, the balance sheet of Blue Company showed the following stockholders’ equity data at December 31 (in
Misha Larkins [42]

Answer:

Par value of common stock is $2.5

Explanation:

The par value of common stock can determined by dividing the common stock total amount in each of the two years by the shares issued and outstanding in each year as demonstrated below:

2019:

Par value of common stock =Common stock($)/shares issued

common stock($) is $555 million

shares issued and outstanding is 222 million shares

par value of common stock=$555 million/222 million=$2.5

2020:

Par value of common stock =Common stock($)/shares issued

common stock($) is $560 million

shares issued and outstanding is 224 million shares

par value of common stock=$560 million/224 million=$2.5

Ultimately the par value of common stock as shown be computations for both years is $2.5

7 0
2 years ago
What is the term for an interval smaller than a step?.
Svetach [21]

Answer:

Half step

Explanation:

If you're talking about music, then a half step is smaller than a step.

7 0
2 years ago
Analyst 1 suggested that the demand curve for newspapers in Baltimore might have shifted to the right because people were becomi
krek1111 [17]

Answer:

A shift to the right of the demand curve can be caused by any factor other than price that increases the willingless of consumers to purchase a product of service (in this case newspapers).

Two other events can result in a shift to the right of the demand curve for newspapers:

  • Local elections are held in Baltimore - when local elections are held, people become more interested in following local news in order to decide their vote, therefore, they are willing to purchase more newspapers.
  • A dramatic event occurs in Baltimore - it could be a natural disaster, a massacre, or an economic crisis, if things become too far from normal, people will want to learn about what is happening, and will look out for information in newspapers.

8 0
2 years ago
Other questions:
  • Pochard Paints manufactures artist’s oil paints. Each 40 ml tube of paint requires 5 minutes of direct labor, and the standard l
    9·1 answer
  • What is the rate at which goods and services are produced based upon total output given total inputs?
    5·1 answer
  • Which gas is a natural source of groundwater pollution​
    8·1 answer
  • Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year
    10·2 answers
  • When a firm is experiencing economies of scale, long-run a. average total cost is minimized. b. average total cost is greater th
    15·1 answer
  • The sticky-wage theory of the short-run aggregate supply curve says that when the price level is lower than expected, production
    12·1 answer
  • Assume you have a home which would cost $120,000 to replace. You currently have the home insured for $85,000. Last night a torna
    15·2 answers
  • Of the world's population of 7.5 billion people, _________ are scraping by on incomes that average less than $2 per day.
    14·1 answer
  • Assume you receive a 3.5% raise in your 2014 salary for 2015. In addition, suppose the CPI was 238 in 2014 and 240 in 2015. Your
    6·1 answer
  • The amount of money you earn has nothing to do with your life style budget T F
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!