Sale ; higher.
The result will be a decrease in the money supply and unemployment.
Money supply:
The entire amount of money in circulation in the economy at any given time is referred to as the money supply. The amount of money in circulation and demand deposits are typically considered standard measures of money. These are statistics that are typically compiled and released by the national government or central bank. In terms of consumerism, supply and demand also depend on the availability of money.
- When the New York Fed sells assets on the open market to reduce the amount of money in circulation, the money supply curve shifts to the left, the interest rate rises, the demand for investments declines, and the AD curve shifts to the left. In the end, the inflation rate falls at the expense of a reduced RGDP.
- Real GDP exceeding potential GDP indicates that the economy is producing more than it can sustainably produce and that aggregate demand is greater than aggregate supply. Price hikes and inflation are expected to follow in this situation.
- Employment in full GDP is the fictitious GDP level that an economy would reach if it reported full employment, i.e., it is the level of GDP that would result in zero unemployment.
In the given question, the requirement is to reduce real GDP and thus reduce unemployment.
Hence, the government will use contractionary policy to reduce unemployment.
Thus, the Fed will conduct an open market sale to hit the new higher federal funds rate target.
Sale ; higher
Reason: The result will be a decrease in the money supply and unemployment.
The currency base shrinks. Money is less plentiful, and interest rates are rising.
The supply of loanable funds decreases, and long-term interest rate rises.
decreases ; rises
Reason: Savings will decline due to a declining money supply, which will also cause a decline in the amount of cash available for loans, raising interest rates.
decreases ; decreases
Investment will decline as interest rates rise and thus will also reduce since investment is a component of
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Answer:
$80
Explanation:
The computation of the price of a room night is given below:-
Investment made = $24,000,000
Return required at $1 per 1,000 = $24,000
Number of rooms = 300
Price of Room rent = Return ÷ Number of rooms
= $24,000 ÷ 300
= $80
Therefore for computing the room price of room rent we simply divide the number of rooms by return required.
Answer:
True
Explanation:
Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources
The question is looking at the effect of price on an industry. This is what microeconomics study
Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.
Answer:
<u>Therefore, the lease liability is $533,600 and the current liability is $46,640.
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Explanation:
Answer:
He will have to invest $17,624 today to reach his goal
Explanation:
Accumulated value = Future Value =FV = $25,000
Rate of Interest = r = 6.35% = 0.0635
Number of Year = n = 6 years
Amount Invested today = PV = ?
FV = PV x (1+r)^n
$25,000 = PV ( 1 + 0.0635 )^6
$25,000 = PV ( 1.0635 )^6
$25,000 = PV x 1.41852
PV = $25,000 / 1.41852
PV = $17,624.01
PV = $17,624