<span>Management by exception holds that only those issues that are significantly deviating from the normal course of action need to be looked at. If the deviations are minor or are likely due to random chance, then management does not need to worry about it at the time. None of the choices presented properly give this definition.</span>
Answer. C Binding price floor that creates a surplus
Explanation: A government imposed price of $12 in this market is an example of a binding price floor that creates a surplus as the government has fixed the price of the goods as $12 due to which the floor price is fixed and the surplus is created as the price is too high that the demand of the goods decreases. This intervention by the government is to create surplus by binding the floor price.
Answer:
47 months
Explanation:
This can be calculated using a financial calculator :
I = 18% / 12 = 1.50%
PV = -5000
PMT = 150
FV = 0
N = 47 months
Fed can achieve its goals using the given tools as shown below.
<h3>
What is money supply?</h3>
- The money supply (or money stock) in macroeconomics refers to the entire volume of currency held by the public at a given point in time.
- There are numerous definitions of "money," but common measures often include currency in circulation and demand deposits (depositors' easily accessible assets on financial institutions' accounts).
- A country's central bank may utilize a definition of what constitutes legal money for its own reasons.
- Money supply data is recorded and released, typically by a government agency or the country's central bank.
- Changes in the money supply are monitored by public and private sector experts because it is believed that such changes affect the prices of securities, inflation, exchange rates, and the business cycle.
In the given situation, Fed can achieve its goals using the given tools:
- Change the reserve requirement - The Fed should lower the reserve requirement to 48 ± 1 percent.
- Change the discount rate - The Fed should lower the rate by 12.50 ± 0.01 percentage points.
- Use open market operations - The Fed should buy $125.00 ± 0.01 worth of bonds.
Therefore, Fed can achieve its goals using the given tools as shown.
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The complete question is given below:
The Fed wants to increase the money supply (which is currently $5,000) by $250. The money multiplier is 2, and people hold no cash. For each 1 percentage point, the discount rate falls, and banks borrow an additional $10. Explain how the Fed can achieve its goals using the following tools:
a. change the reserve req.
b. change the discount rate.
c. use open market operations.
Two of the major advantages of a pass-through entity are that investors can assume the tax deductions and losses earnings.
An option to lower taxable income is a tax deduction. A standard deduction is a single, predetermined deduction. Higher-income taxpayers frequently have considerable deductible expenses, such as state and local taxes paid, mortgage interest, and charitable contributions, which is why itemized deductions are popular.
Any expense that is deemed "ordinary, necessary, and reasonable" and aids in the revenue generation of a firm is tax deductible. Usually, it is subtracted from the business's income before taxes.
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