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.
Answer:
Risk-free rate decreases
Explanation:
The CAPM formula for calculating cost of equity requires one to know the value of 3 pieces of information only:
1. the market rate of return,
2. the beta value
3. the risk-free rate.
Ra = Rrf + [Ba∗(Rm−Rrf)]
where:
Ra=Cost of Equity
Rrf = Risk-Free Rate
Ba = Beta
Rm=Market Rate of Return
From the formula
Ra = Rrf + [1.2∗(Rm−Rrf)]
Ra = Rrf + 1.2Rm - 1.2Rrf
From Ra = 1.2Rm -0.2Rrf
From the expression above, it can be seen that the lower the value of Rrf (Risk-Free rate), the higher the value of Ra.
To attract oversea investors and working immigrants
Answer:
Intuition
Explanation:
-Goal refers to something that you want to achieve.
-Destiny refers to events that are meant to happen in the future to a person.
-Intuition refers to something that you know from a feeling without having to analyze it.
-Only option refers to a unique choice someone has.
According to the definitions, Madelyn identifies the feeling as her intuition.
