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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.

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When analyzing the feedback on an evaluation form, a trainer should look for?
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2 years ago
for each of the following goods that are imported in the united states, identify which of the three sources of comparative advan
olya-2409 [2.1K]

For each of the following goods that are imported in the United States, abundant input is the only source of comparative advantages that accounts for that country's comparative advantage. Therefore, the option A holds true.

<h3>What is the significance of a comparative advantage?</h3>

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7 0
1 year ago
While searching Ancestry.com, you learn that you are a direct descendant and sole living heir of Alexander Hamilton who founded
34kurt

Answer:

C. $1.24 million

Explanation:

Given that

Annualized interest compounded = 5%

For monthly, it would be = 5% ÷ 12 months = 0.4167%

Time = 235 years

For monthly, it would be = 235 years × 12 months = 2,820

Present value = $10

We know that

Future value = Present value × (1 + interest rate)^number of years

                     = $10 × (1 + 0.4167%)^2820

After solving this, the answer would be  $1.24 million

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