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gizmo_the_mogwai [7]
3 years ago
10

The Fed announced in September 2013 that it would postpone winding down its monetary stimulus until the economic recovery was st

ronger. When the Fed does finally begin to reduce bond purchases?
a. interest rates will rise.
b. interest rates will fall.
c. stock prices will rise.
d. bond prices will rise.
Business
1 answer:
kolezko [41]3 years ago
3 0

Answer:

A) interest rates will rise.

Explanation:

When the FED buys US securities it is carrying out an expansionary monetary policy. It reduces the interest rate of US securities so that more investors are willing to sell their US securities to the FED since their rate of return is very small.

If the FED stops buying back US securities, it means that they will stop their expansionary monetary policy, so the FED will start to increase US securities' interest rates. That way investors will be willing to keep their US securities and will not sell them since their rate of return has increased. This increase in the interest rate will lower the price of US securities and decrease the money supply.

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Communication skills are unimportant in today’s technologically advanced world. Please select the best answer from the choices p
Valentin [98]

Answer:

false

Explanation:

even with technology you still need to know how to communicate properly.

5 0
3 years ago
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What methods may an economist use to test a hypothesis? A. Wait for real-world events to confirm or refute the hypothesis. B. Co
Scrat [10]

Answer:

A. Wait for real-world events to confirm or refute the hypothesis.

B. Conduct one or more experiments.

Explanation:

Hypothesis by economists can lead to results that can decide economic policy. As such, it is important that they are tried and tested.

One way of testing a hypothesis is the standard method of conducting one of more experiments. These experiments will simulate world settings so that the experiment can be as close as possible to the real world.

Another method is to experience the hypothesis. The economist could just wait for events in the real world to either confirm or deny the hypothesis because the economy is dynamic and has been known to react uniquely to events that it otherwise should not have reacted to. It is therefore likely that it might react in a certain way that will enable the economist test their hypothesis.

5 0
3 years ago
Downs Tax Planning Service bought communications equipment for $9,600 on January 1, 2017. It has an estimated useful life of fiv
MaRussiya [10]

Answer:

$960

Explanation:

For computing the accumulated depreciation, first we have to compute the depreciation expense which is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($9,600 - $0) ÷ (5 years)

= ($9,600) ÷ (5 years)  

= $1,920

This is a full year depreciation but we have to find out for June 30,2017 i.e 6 months

= $1,920 ÷ 12 months × 6 months

= $960

The same is recorded as an accumulated depreciation

3 0
3 years ago
Cost of Goods Sold account is debited and Finished Goods Inventory is credited for A) purchase of goods on account. B) the sale
Firlakuza [10]

Answer:

B) the sale of goods to a customer.

Explanation:

When goods are sold to a customer, the cost of goods sold account is debited by the same value that the finished goods inventory is credited.

For example, suppose a company sells $1,000 worth of goods to a customer, and the sales price is $1,200. The customer pays by cash the full value of the goods. The journal entry would be:

Account                                    Debit           Credit

Cash                                         $1,200

Sales Revenue                                             $1,200

Cost of Goods Sold                $1,000

Finished Goods Inventory                           $1,000

7 0
3 years ago
Required information [The following information applies to the questions displayed below.] Desmond is 25 years old and he partic
MrRa [10]

Answer:

Saver's credit = $0

Explanation:

He is not entitled to any saver's credit, as he is not married and his AGI is greater than $32,000. Therefore the Saver's credit is equal to zero. Is also important to consider that Desmond is a head of a household and his AIG is between 31,126 and 48,000.

6 0
3 years ago
Read 2 more answers
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