All categories

3 years ago

Why does the federal reserve choose to increase the money supply?

Business

1 answer:

SVETLANKA909090 [29]3 years ago

7 0

To control the supply of money to help stabilize the economy

Explanation:

An increase in the supply of money works both through lowering interest rates, which spurs investment, and through putting more money in the hands of consumers, making them feel wealthier, and this stimulates spending.

You might be interested in

6. Self-concept is how a child

Nostrana [21]

The answer would be B
(self-concept is how one sees their self and their image, thus the “self” part of the word)

7 0

3 years ago

Read 2 more answers

B.f. skinner's concept of __________ is the control of behavior by manipulating its consequences. equity expectancy acquired nee

Margarita [4]

Skinner is most known for operant conditioning which is the control of behavior by manipulating it consequences.

8 0

4 years ago

The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this pro

xenn [34]

Answer:

Financial disadvantage from dropping = $(182,000)

Explanation:

A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.

In a shut down decision , the following relevant cash flows should be considered:

1. Lost contribution from the product to be shut down

2. Savings in fixed directly attributable to the product under consideration.

So, we will apply these principles as follows:

Lost contribution from the product to be shut down:

(942,000-415,000) (527,000)

Savings from fixed direct fixed cost:

(217,000+128,000) 345,000

Net loss contribution (182,000)

Financial disadvantage from dropping = $(182,000)

5 0

3 years ago

A. How does inflation distort ratio analysis comparisons for one company over time (trend analysis) and for different companies

marin [14]

Answer (a):

The inflation distorts the ratio as their are number of things that inflate their prices differently. The prices of the rice is increasing by 1%, wheat prices are growing by 2% and salaries expenses are increasing by 5%. This means there is no consistant increase in all the commodity prices. And this issue becomes very prominent after 3 years. Trend analysis becomes meaningless when we make technological advancements which gives us edge to control the costs of the operations and inflation does the same thing but in opposite direction. It increases the cost of different operations with different percentages.

Answer (b):

Both balance sheet and income statement items would be affected because these are monetary values that would be inflated over time which will blurr the image of the entity.

8 0

4 years ago

Morse Company reports total contribution margin of $48,000 and pretax net income of $12,000 for the current month. The degree of

kenny6666 [7]

Answer:

The correct answer is A

Explanation:

DOL stands for Degree of operating leverage, which is a measure that is used to determine how the operating income of the company changes after the change in percentage in its sales.

The formula for computing the degree of operating leverage is as follows:

Degree of operating leverage = Contribution margin / Pre-tax net income

where

Contribution margin is $48,000

Pre- tax net income is $12,000

Putting the values above:

Degree of operating leverage = $48,000 / $12,000

Degree of operating leverage = 4.0

4 0

4 years ago