now suppose that the government immediately pursues an accommodative policy by increasing government purchases in response to the short run economic impact of the higher oil prices <u>The output will be $billion and the price level will increase.</u>
<h3>What is
accommodative policy?</h3>
When a central bank (like the Federal Reserve) tries to increase the general money supply to support the economy when growth is stalling, this is known as accommodating monetary policy, often known as loose credit or easy monetary policy (as measured by GDP). The goal of the policy is to allow the money supply to increase in step with both the demand for money and national revenue.
- The expansion of the money supply by central banks to stimulate the economy is known as accommodating monetary policy.
- The Federal funds rate has been decreased as part of monetary policies that are deemed accommodating.
- The goals of these policies are to lower the cost of borrowing money and boost consumer spending.
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<h3><u /></h3>
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Answer:
C) $22,293,333
Explanation:
If the 7,500 shares of the deceased shareholder are worth $1.1 million, then each share is worth $ 146.67 (= $1,100,000 / 7,500 shares). If the company has a total of 152,000 outstanding shares, then the total value of the firm is $ 22,293,333 (= 152,000 shares x $146.67 per share).
