Answer:
<u>expansionary; will be equal to</u>
Explanation:
<em>Remember</em>, monetary policies are basically divided into:
- expansionary monetary policy, and
- contractionary monetary policy.
Indeed, as the name implies, the expansionary monetary policy is meant to in a sense boost up economic growth in terms of reducing interest rates thereby theoretically increasing spending and also leading to an increase in the money supply. When there is an increase in the money supply, this thus leads to an increased inflation rate, which would be expected if workers and firms have rational expectations.
Answer:
a. A Japanese firm sells its U.S. government securities to obtain funds to buy real estate in Japan.
This contributes to the demand for yen
b. A U.S. import company pays for glassware purchased from a small Japanese producer.
This contributes to the demand for yen
c. A U.S. farm cooperative receives payment from a Japanese importer of U.S. oranges.
This contributes to the supply of yen for foreign exchange
d. A U.S. pension fund uses some incoming contributions to buy equity shares of several Japanese companies through the Tokyo stock exchange.
This contributes to the demand for yen
Explanation:
Answer:
a)- the income effect is greater than the subsitutuion effect
Explanation:
Answer:
$85,000
Explanation:
Given that,
Shares sold = 50,000 shares of $3 par common stock for $5
Buys back = 10% of its common shares outstanding for $7 per share
Total equity on December 31 = $300,000
Balance in stockholder's equity without retained earnings:
= Beginning balance in stockholder's equity + Increase in stockholder's equity - Decrease in stockholder's equity
= $0 + (50,000 × $5) - (50,000 × 10% × $7)
= $250,000 - $35,000
= $215,000
Retained earnings on December 31:
= Total equity at December 31 - Balance in stockholder's equity without retained earnings
= $300,000 - $215,000
= $85,000
