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Talja [164]
3 years ago
5

When a decrease in credit card availability increases the cash people hold, the money-demand curve shifts to the right. As a res

ult, there is an increase in the interest rates. What should the Federal Reserve do to restore the interest rate level back to the original interest rate?
Business
1 answer:
Tju [1.3M]3 years ago
7 0

Answer:

The FED must decrease the price of money (or interest rates), and to do that it will buy US securities. By purchasing securities, the FED will decrease the money supply, lower the interest rates and halt inflation. This is called a contractionary monetary policy.

It can also increase the banking system's required reserve ratio, but besides lowering the interest rates, it will also decrease the supply of credit cards even further, so one action could offset the other. That is why this policy might be inefficient in this specific case.

You might be interested in
The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expen
Naya [18.7K]

Answer:

The correct answer is Congruence.

Explanation:

Any company that makes its financial statements available to the public will conform to GAAP standards. The congruence principle is one of the fundamental lines established by the Financial Accounting Standards Board (FASB) This process is different from the cash accounting principles that the total amount of income or expenses is recorded regardless of when They have an impact on the cash flow of the company. The GAAP congruence principle helps to provide a clear and accurate picture of cash on hand, the revenue generated and expenses incurred at a specific point in time (see Resources below).

In order to minimize errors and provide accurate account information during the accounting period, companies can recognize expenses and revenues that occur within a time-giving period. The GAAP congruence principle recognizes expenses when they are incurred, and when it distinguishes between deferred income and accrued expenses in order to determine its real value of the company at a given time.

6 0
3 years ago
Typical housing lease may require a tenant to
Oxana [17]
There is a lot of things that a typical lease might include such as

1. Do not remodel, whether it be construction or a paint job without consent from your landlord
2. Pets are either not allowed, only certain pets are allowed, there would be limit to how many pets you coukld have or there will be a fee per pet.
Also, sometimes bully breeds are completely prohibited.
3. Create a payment plan prior to moving in

those are just a few. lemme know if u need more examples! hope i helped
5 0
4 years ago
Carson Electronics uses65 percent common stock and 35 percent debt to finance its operations. The aftertax cost of debt is 5.8 p
Lina20 [59]

Answer:

$471,319.20

Explanation:

Carson's WACC = (0.65 x 16.1%) + (0.35 x 5.8%) = 10.47 + 2.03 = 12.5%

The PV of the investment = CF / (1 + wacc) + {[CF / (wacc - g)] / (1 + wacc)}

PV = $46,000 / 1.125 + {[$46,000 / (9.5%)] / 1.125}

PV = $40,890.71 + ($484,210.53 / 1.125)

PV = $40,890.71 + $430,428.49 = $471,319.20

8 0
3 years ago
The Marketing Manager has requested that a field be added to each account that displays the number of contacts of associated wit
Andrej [43]

The requirement of the Marketing Manager can be achieved by:

- Creating a custom field on the account.

- Using a script to update the field when contacts are added or deleted.

<u>Explanation</u>:

A script helps in executing the changes that are made in the field. The scripts are used to perform custom actions before or after changes to the database/records.

Addition or deletion of data from a database can be performed efficiently with the use of the script.

The marketing manager wishes to create a field to mention the number of contacts related with the account. The requirement of the manager can be fulfilled by creating a custom field on the account.

4 0
3 years ago
What percentage of your gross salary does the consumer financial?.
kati45 [8]

The complete question is as follows:

What percentage of your gross salary does the consumer financial bureau suggest?

The proportion of gross income suggested by the Consumer Financial Bureau is not more than 15% or 10% of the earned income.

<h3>What is a gross salary?</h3>

Gross salary is the amount received by an employee before any deductions and income taxes. It is given by the employer of the company in its respective bank account.

According to the Consumer Financial Bureau, the proportion of not exceeding 10% of gross income should be reserved for affording the student loan payments, or not greater than 15% be reserved for monthly debts except rental and mortgage reimbursements.

Therefore, the type of payments will decide the proportion of gross income being allocated in accordance with the Consumer Financial Bureau.

Learn more about the gross salary in the related link:

brainly.com/question/5715627

#SPJ1

8 0
2 years ago
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