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4 years ago

Consider the market for corn.

Business

1 answer:

Romashka-Z-Leto [24]4 years ago

3 0

Answer:

(a) This will shift the supply curve of corn leftwards because a lot of corn would be destroyed from the drought.

(b) This will increase the demand and price for corn and hence, this will cause a movement along a supply curve.

(c) Reduction in the income level of the consumers will lead to reduce the demand and prices of the corn. Therefore, there is a movement along a supply curve.

(d) Increase in the productivity will cause a rise in the production of corn and hence, this will shift the supply curve rightwards.

(e) By advertising campaign, there is an increase in the demand for beef and therefore, this will increase the price of beef. Hence, cause a movement along a supply curve.

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Monetary policy is neutral in both the short-run and the long-run. b. Though monetary policy is neutral in the long-run, it may

Trava [24]

Answer:

Explanation:

Monetary policy are policies taken by the central bank of a country to shift aggregate demand.

Tools of monetary policy

1. Open market operations : government can either sell bonds to the public, this is known as open market sales. this is an example of an contractionary policy or it can buy bonds from the public. this is known as open market purchase. it is an expansionary policy

2. Reserve Requirement : Reserves are the proportion of deposits required by the central bank that banks keep

If reserve requirement is increased, it is an example of a contractionary policy. If on the other hand, it is reduced, it is an example of an expansionary policy.

3. Discount rate : this is the rate at which the central bank lends to commercial banks. An increase in discount rate is a contractionary policy while an decrease in discount rate is an expansionary policy

There are two types of monetary policy :

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy

Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy

Goals of monetary policy include

• financial market stability

• economic growth

• high employment

Money neutrality is an economic theory that changes in money supply do not affect real variables but only affect nominal variables. As a result, monetary policy is neutral in the long-run and affects real variables in the short-run.

4 0

3 years ago

How might a surplus of food have helped civilizations advance from hunter-gatherer societies?

Orlov [11]

A surplus of food is definitely something that allowed people to specialize in different Jobs. This is how we can say that the people in the past used this surplus. I hope this works for you

5 0

3 years ago

Read 2 more answers

A trust under which property is transferred by a living trustor to a trustee with instructions for management of assets and for

skad [1K]

Answer:

inter vivos trust.

Explanation:

A trust under which property is transferred by a living trustor to a trustee with instructions for management of assets and for distribution of income, is known as an inter vivos trust. The main purpose of an inter vivos trust is to facilitate the naming of the beneficiaries of assets or property for transfer purposes while the owner is still alive in order to avoid probations.

3 0

4 years ago

Some interview questions are designed to rattle you to see how you deal with stress. True or false.

mr_godi [17]

True, I learned from
experience

7 0

3 years ago

Read 2 more answers

.. When lightning strikes Brittany’s home during a storm, the resulting fire completely consumes the structure before firefighte

anygoal [31]

Answer:

$245,000

Explanation:

A dwelling fire policy (DP-3) covers losses to the house's structure, personal liability and loss rental income. Since it covers lost rental income, it is generally used by landlords, but anyone can get one for their house.

In this case, since the reparations will require at least $245,000, then that is the amount that Brittany should receive. She cannot receive any more because that is her policy's coverage, but shouldn't receive less either.

8 0

3 years ago