Answer:
the Federal Reserve creates dollars and uses them to purchase government bonds from the public.
Explanation:
The money supply is increased by the Federal Reserve Open Market Committee under expansionary monetary policy actions to increase the level of aggregate demand in the market and push the level of output when business activity in the economy is low and the economy is experiencing a recession.
The FOMC creates dollars and uses them to purchase government bonds from the public that injects money in the market by increasing the credit creation capacity of commercial banks. As the money supply increases, the spending capacity of consumers is increased, either by lowering the cost of debt on their credit cards or by increasing employment in the market with increased investments by firms as they borrow with greater zeal when the cost of borrowing is low.
<span>A country would want a trade surplus rather than a trade deficit because trade surplus is better. In order to have a trade surplus, a country must export (sell) more than it imports (buys).</span>
Answer:
By what percentage did the price of a dozen eggs rise?
- [($2.75 - $0.96) / $0.96] x 100 = 186.46%
By what percentage did the wage rise?
- [($21.26 - $14.28) / $14.28] x 100 = 48.88%
In order to earn enough to buy a dozen eggs, a worker had to work <u>4.04</u> minutes in December 2000 and <u>7.76</u> minutes in December 2015.
- ($0.96 / $14.28) x 60 = 4.04 minutes
- ($2.75 / $21.26) x 60 = 7.76 minutes
Workers' purchasing power in terms of eggs between 2000 and 2015.
- purchasing power in terms of eggs in 2000 = 14.875 dozens of eggs per hour
- purchasing power in terms of eggs in 2015 = 7.76 dozens of eggs per hour
