I will recommend a contraction of the money supply by increasing the revenue ratio or discount rate or selling bond.
I will also recommend a contraction of the money supply which would reduce the lending ability of the banking system, increase the real interest rate and reduce investment spending, aggregate demand and inflation.
<h2>Further Explanation</h2>
Supposing I am a member of the board of governors and the economy is experiencing a sharp rise in the inflation rate, I will suggest to other members and recommend a contraction of the money supply by increasing the discount rate.
The discount rate refers to an interest rate that is charged when commercial banks borrow money from the Federal Reserve System.
Also, it is required of all banks in the United States to set aside a particular percentage of their deposits in reserve.
The Federal Reserve System was created in 1913 and it is the central bank of the United States. The structure of the Federal Reserve System is made of the Board of governors and 12 Federal Reserve banks
Some of the core functions of the Federal Reserve board include
- They regulate the money supply with monetary policy
- They control the affairs of the financial institutions
- They control the checking clearing procedures in both regional and national.
Learn more about the federal reserve system at:
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Answer:
A. Total expenditure on light bulb increases after the tax.
Explanation:
The government has imposed tax on the light bulb production and the new price after the tax is $14. The price before the tax was $12 and the marginal cost before tax was $9. There was a profit of $3 for the producers of the light bulb. The tax burden is shifted to the consumers of the bulb since the marginal price after tax is $12. Total expense for the production of bulb has increased due to tax.
Answer:
decrease the bid price in the OTCBB
Explanation:
Given that, the dealer's Bid price is too high, this is believed to be the reason behind the sellers trying to make orders. Hence, to reduce the orders, the dealer will lower the Bid price.
Hence, in this case, the best answer or alternative to be considered is that, the dealer would most likely decrease the bid price in the OTCBB, this is specifically to discourage the sellers.
Answer:
c. can challenge the determination in court.
Explanation:
Ralph owns a forested land which he most likely purchased for the purpose of cutting timber. If the Department of the Interior has declared that a small fruitfly on his property is an endangered species and prevented the harvesting of trees, he can challenge this in court.
This is because the land is private property and the determination by the Department of the Interior will make the land useless to Ralph. Also the government only has the ability to enforce such directives on public property.
Answer:
Q1 : a. discharges mutual from the contract.
Q2 : a. a material breach
Explanation:
Neil is hired by Mutual company for a two year contract. Neil has certain duties which he has to fulfill during the employment term. Neil is often absent without any proper explanation and reason. This is against the term of employment contract. When he is in the office he is not attentive and is not able to manage the mutual investments. Neil is doing a material breach since he is not fulfilling the basic requirements.
