Answer:
an inflationary increase in the price level.
Explanation:
Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country.
In order to boost economic growth, a monetary policy is implemented to increase money supply (liquidity). Also, it is used to prevent inflation by reducing money supply.
An inflationary gap, also referred to as an expansionary gap in economics, is typically used for measuring the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate. Consequently, this situation causes the price of goods and services to go up with a low income level among the people living in the country.
A budget deficit is the amount by which spending exceeds income.
All other factors held constant or all things being equal (ceteris paribus), an increase in government's budget deficit drives the interest rate up.
Generally, when there's a deficit in government budget, they resort to issuing more bonds or borrowing money from creditors. These creditors are likely to be sceptical about the government's ability to repay the debt and as such would increase the interest rate.
Hence, an inflationary increase in the price level of goods and services is not much of a danger if the U.S. economy is producing at a level that is substantially less than potential gross domestic product (GDP) and the aggregate demand is being increased by government's budget deficits.
Answer:
11.11%
Explanation:
The computation of the return on assets is given below:
But before that following calculations need to be done
Total assets = Total debt ÷ Total debt ratio
= $657,000 ÷ 0.31
= $2,119,354.839
Total equity = Total Assets - Total Debt
= $2,119,354.839 - $657,000
= $1,462,354.839
Net profit = Total equity × Return on equity
= $1,462,354.839 × 0.161
= $235,439.129
And, finally
ROA = Net profit ÷ Total Assets
= $235,439.129 ÷ $2,119,354.839
= 11.11%
When Ashton, the appraiser applies more weight to two comparables over several others he used, he is utilizing the: Correlation method.
<h3>What is the Correlation Method?</h3>
The correlation method is the method utilized in the sales comparison approach where more importance is given to two properties being compared against some others.
The sales comparison approach itself is used in analyzing the worth of a property by comparing it to others that have been sold in recent times.
Learn more about the sales comparison approach here:
brainly.com/question/14497595
