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Serjik [45]
3 years ago
6

A central bank that does NOT follow the Taylor principle will fail to raise nominal interest rates by more than the increase in

expected inflation. Therefore, higher inflation will lead to a ________ in real interest rates, resulting in ________-sloping monetary policy curves.
Business
1 answer:
Kipish [7]3 years ago
6 0

Answer:

Decline & Downward

Explanation:

Taylor rule states that when the current inflation is higher than the target inflation the central bank should increase the interest rates. Therefore, central banks that does not follow Taylor rule, will not increase the interest rate in case of higher inflation expectation that eventually lead to:

  • Decline in real interest rates (difference between interest rate & nominal inflation), as nominal inflation is increasing and interest rates are unchanged.
  • Downward sloping curve  as short term inflation expectations are higher

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A toy company creates a new toy that suddenly become very popular. The toys in the stores sell out immediately, and the factorie
shtirl [24]
Your answer would be B. The price will go up because supply is low.
3 0
3 years ago
A computer repair service has a design capacity of 80 repairs per day. Its effective capacity, however, is 64 repairs per day, a
Lelu [443]

Answer:

The recommendation for the manager is to investigate more on scheduling and balancing.

Explanation:

It is clear that it is not a problem of quality (the problem is the number of repairs per day, not how the satisfaction customer's level is after the repairment). It is not either a problem of absenteeism since it does not define the total workers hired Vs the output of the total repairs. It seems that the effective capacity has to do more with how the tasks and loads are carried by the working team, since the difference between "design" capacity and "effective" capacity suggests a problem with balancing and scheduling activities

7 0
3 years ago
Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2019, she leases
gtnhenbr [62]

Answer:

She can deduct the full $120,000. the answer is $120,000.

Explanation:

Therefore, M is following cash basis of accounting , She can deduct the full $120,000 amount. Under cash system, expenses are recorded when cash is paid irrespective of whether it is accrued or not.

5 0
4 years ago
A company is considering a capital investment of $16,000 in new equipment which will improve production and increase cash flows
AnnyKZ [126]

Answer:

PAYBACK PERIOD

Year        Cashflow       Cummulative cashflow

                     $                           $

 0            (16,000)               (16,000)

  1             8,000                  (8,000)

  2            6,000                  (2,000)

  3            5,000                   3000

  4            6,000

  5            5,000

Payback period

= 2 years + 2,000/5,000

= 2.4 years

Explanation:

In this case, we need to deduct the initial outlay from the cashflows for each year until the initial outlay is fully recovered.

7 0
4 years ago
The following information is provided for Company Z. Per Unit Total $ % Sales Revenue (1,500 Units) $25.00 $37,500 100% Variable
nikklg [1K]

The Breakeven point in Dollars is $25,000

Breakeven point in Dollars is computed as;

= Fixed cost / Contribution margin ratio

First, we need to compute the contribution margin ratio

= Contribution margin  / Revenues

= $22,500 / $37,500

= 0.6%

Then,

Breakeven point in Dollars

= Fixed cost / Contribution margin ratio

= $15,000 / 0.6%

= $25,000

Therefore, Company Z Breakeven Point in Dollars is $25,000

Lear more at : brainly.com/question/25694199

6 0
2 years ago
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