Answer: a. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
d. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses
Explanation:
Stabilization policy is a policy that is used by the government to maintain a healthy economic growth level in the country and also prevent the economy from slowing down.
In the above scenario, the arguments in favor of active stabilization policy by the government will be that the The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates and that shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
It should be noted that pessimism on the economy will bring about economic downturns in the economy which will have a negative effect on the aggregate demand. These economic downturns aren't beneficial to the economy.
Also, optimism among consumers and businesses can lead to economic instability. This will therefore bring about calling for a stabilization policy that will tackle this.
Therefore, option A and D are the correct answers.
Answer:
Approaches to risk, structure and length of commitment has been changed in a positive way.
Explanation:
Approaches to risk, structure and length of commitment has been changed in a positive way. Risk is greatly changed by introducing the following strategy:
Transfer, Avoid, Reduce and Accept.
The risk is analyzed first to identify the nature whether it can be transferred or not if yes it is transferred, if not then risk is again analyzed if this can be avoided, if not then risk is again analyzed if the chances of risk occurring can be reduced, if not then the risk is accepted.
Length of commitment is changed to easy terms, the length of commitment in the past was of a longer duration [more than a year], unlike now which is a choice, length of commitment can be less than a year or maybe more than a year.
Answer:
c. Optimum replacement interval (ORI)
Explanation:
Optimum replacement interval used to estimate the most cost effective time to replace an asset on the basis of their replacement cost.
There needs to be a balance between the replacement cost and the value that is being lost by changing the asset.
The useful value must be low to justify replacement cost.
For example if the cost of maintaining a machine has increased a lot as a result of wear and tear, it will be more cost effective to make a replacement in order to minimise cost and increase efficiency
The right answer for the question that is being asked and shown above is that: "d. the place where stocks, bonds, and securities are traded." In the context of investing, the term market refers to d. the place where stocks, bonds, and securities are traded.<span>
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Not trying to sale to the wrong company or risking on a single product of some sort.
