1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gavmur [86]
3 years ago
8

When expansionary monetary policy is used to increase aggregate demand, starting from equilibrium, which of the following is tru

e of the beneficial effects of growth and the painful effects of inflation?
Business
1 answer:
juin [17]3 years ago
6 0

Answer:

a. Benefits of growth;

1. Increased production to meet demand

b. Negative effects of inflation;

1. Increased opportunity cost of holding money

Explanation:

a.

Expansionary monetary policies are government incentives that aim to encourage the growth of the economy by increasing the supply of money in the economy. It involves the boosting of aggregate demand to cover for the shortfalls in private demand. Most economies that go into a recession is usually due to a lack in the aggregate demand. The main purpose of expansionary monetary policy is to encourage spending and investment by encouraging accessibility of money in the economy. When more people have access to money, they tend to invest more into the economy which encourages economic growth. On the same note, when individuals in an economy have money, it increases the availability of disposable income. This means that most people feel much wealthier which encourages them to spend more. Spending also increases demand for goods which encourages production which consequently encourages economic growth.

b.

On the contrary, when expansionary monetary policy exceeds a certain level, it leads to inflation. Inflation is basically the increase in prices in an economy due to increased demand for goods that surpasses the supply. Thus suppliers increase the price since the availability of goods and services is limited. Some effects of inflation include an increased opportunity cost of holding money and discourages investors since they are uncertain over the future.

You might be interested in
A(n) _____ refers to a situation where a publicly traded company is purchased and then taken off the stock market.
dalvyx [7]
Leveraged buyout/////////////////
4 0
3 years ago
Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% annual coupon rate, and a par value of $1,000. The discount rate is
azamat

Answer:

$977.93

Explanation:

This is a coupon paying bond. Using a financial calculator, input the following;

Time to maturity; N = 15

Coupon payment; PMT = 7.25% *1000 = 72.5

Face Value; FV = 1,000

Annual interest rate; I/Y = 7.5%

then compute the price of the bond, a.k.a present value; CPT PV = 977.93

Therefore, the price of the bond today is $977.93

7 0
3 years ago
Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 470,000 shares of $9 par common stock and 65,000 share
Ann [662]

Answer and Explanation:

a. The journal entries are shown below:

1) Cash Dr  (16,000 shares × $14) $224,000

        To Common stock (16,000 shares × $9) $144,000

        To Additional paid in capital - common  (16,000 shares × 5) $80,000

(Being the issuance of the common stock is recorded)

2 Cash Dr  (15,000 shares × $30) $450,000

        To Preferred stock (15,000 shares × $25) $375,000

        To Additional paid in capital - preferred  (15,000 shares × $5) $75,000

(Being the issuance of the preferred stock is recorded)

3) Cash Dr  (52,000 shares × $17) $884,000

        To Common stock (52,000 shares × $9) $468,000

        To Additional paid in capital - common  (52,000 shares × $8) $416,000

(Being the issuance of the common stock is recorded)

We debited the cash to record this journal entries as it raised the assets and credited the common stock and additional paid in capital, as it also raised the equity of the stockholder

b. The preparation of the stockholder equity section of the balance sheet is presented below:

                          Stockholders' equity section of the balance sheet

Common stock  $612,000    ($144,000 + $468,000)

preferred stock $450,000

Additional paid in capital - preferred $75,000

Additional paid in capital - common   $496,000   ($80,000 + $416,000)

Total $1,633,000

4 0
3 years ago
The United States is___. A. the leading exporter, but not the leading importer in the world B. the leading importer and exporter
Simora [160]

C. The leading importer, but not the leading exporter in the world

US is only the third largest exporter but it is the largest exporter

7 0
3 years ago
Read 2 more answers
Describe at least two advantages a large company has over a smaller company. (1-4 sentences.
STatiana [176]

A larger company can benefit from <em>economies of scale</em>, meaning they can get discounts by purchasing and producing in bulk which a smaller company wouldn't have the ability to do. A larger store also has the potential for higher revenue because they have more goods and services to sell.

4 0
3 years ago
Read 2 more answers
Other questions:
  • Antonio assaulted Mark after the two argued about a parking space. The District Attomey's office prosecuted Antonio on assault c
    13·1 answer
  • Polk Software Inc. has a quick ratio of 2.00x, $32,850 in cash, $18,250 in accounts receivable, some inventory, total current as
    12·1 answer
  • Which of the following is an example of pretexting? A. A person accessing your email account without permission B. A person stea
    6·1 answer
  • A nation reaches its steady state equilibrium when
    12·1 answer
  • Shelley’s Salsa produces and sells organic salsa. Last year it sold 3 million tubs of salsa at a price of $3 per tub. For last y
    8·1 answer
  • Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average
    6·1 answer
  • When did banks of deposit first arise?
    8·1 answer
  • What is the gross income for a real estate agent in 2021?
    13·1 answer
  • Defined by Miles as "a requirement of the activities of one subunit that is affected by the activities of other subunits" is a _
    8·1 answer
  • Why are many oligopolistic market outcomes conveniently described by a prisoners' dilemma?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!