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slega [8]
3 years ago
15

Which of the following Fed actions will increase bank lending? a) The Fed reverse repos $10 billion worth of Treasury bonds to n

on-bank financial firms. unchecked b) The Fed raises the reserve ratio from 10 percent to 11 percent. unchecked c) The Fed raises the discount rate from 5 percent to 6 percent. unchecked d) The Fed lowers the discount rate from 4 percent to 2 percent.
Business
2 answers:
DiKsa [7]3 years ago
7 0

Answer:

D. The Fed lowers the discount rate from 4 percent to 2 percent.

max2010maxim [7]3 years ago
5 0

Answer:

d) The Fed lowers the discount rate from 4 percent to 2 percent.

Explanation:

The federal discount rate is the interest rate charged by central bank to other banks.

The federal discount rate is used as an instrument to control the economy.

A decrease in the discount rate makes it cheaper for commercial banks to borrow money resulting into increased lending activity throughout the economy which is usually part of expansionary monetary policy.

Conversely, a hike in discount rate makes it more expensive for banks to borrow money leading to slowdown of economy which is part of contractionary monetary policy.

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Ased on the quantity theory of​ money, if velocity is​ constant, inflation is likely to occur​ when:
Slav-nsk [51]

Answer:

Option (B) is correct.

Explanation:

The quantity theory of money can be expressed in the form of an equation that is

M × V= P × GDP

where,

M = Money supply

V = Velocity of money

P = Price level

GDP = Gross domestic product

P × GDP is the nominal GDP, it is the amount of required for purchasing the total amount of output. All the transactions are depends upon the income level of the consumers at the full-employment level. So, if there is an increase in the money supply, this will results in higher prices which means that an increase in the money supply over the real gross domestic product would cause the inflation.

Increase in the money supply will increase the nominal GDP but real GDP remains the same. But if the growth rate of money supply is equal to the growth rate of real GDP then there will be no inflation and Real GDP remains constant at the full-employment level, hence, its level of volume doesn't increase if the there is an increase in the money supply.

Therefore, increased growth rate of money supply over the real GDP causes inflation.

4 0
4 years ago
Example of Coping StrategiesYou have an employee who copes with stressful problems by burying his head in the sand and pretendin
Finger [1]

Answer:

Coping Strategies

The problem-focused coping strategy would be:

D. Ask a coworker to help lighten the load.

Explanation:

By asking a coworker to lighten the load, the worker has practically admitted that a problem exists and needs to be solved.  The other listed coping strategies merely postpone the evil day when reality will dawn.  Adopting a "glass is half-full not empty" mentality and "hitting a punching bag to release the frustration" sound pretentious. They do not tackle the problem.

3 0
3 years ago
Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recen
SpyIntel [72]

Answer:

The right answer is "$14,496".

Explanation:

The given values are:

Direct material cost,

= $7700

Labor hours,

= 178

Wage rate,

= $22 per hour

Machine hours,

= 90

Predetermined overhead rate per machine,

= $32

Now,

The direct labors cost will be:

= Labor \ hours\times wage \ rate

= 178\times 22

= 3,916 ($)

Mfg. overhead costs will be:

= Machine \ hours\times Predetermined  \ overhead \ rate

= 90\times 32

= 2,880 ($)

So,

The total manufacturing cost will be:

= 7700+3916+2880

= 14,496 ($)

3 0
3 years ago
An entrepreneur borrows $500,000 today. The interest rate is 11.5%. If the entrepreneur makes annual payments of $70,000 per yea
love history [14]

Answer:

After 18.44 year loan will be paid

Explanation:

We have given an entrepreneur borrows $500,000 today.

So total amount is $500000

Annual payment is of $70000

Rate of interest r = 11.5 %

We have to find the time period

We know that total amount is given by

A=P(1+\frac{r}{100})^n, here A is total amount , P is yearly paid amount, r is rate of interest and n is time period

So 500000=70000\times (1+\frac{11.25}{100})^n

7.142=1.1125^n

Taking log both side

log7.142=nlog1.1125

n\times 0.0463=0.8538

n = 18.44 year

So after 18.44 year loan will be paid

6 0
4 years ago
Without foreign trade, many of the things we buy in the United States might cost more or not be available to our consumers.
oksian1 [2.3K]
This is a true statement
6 0
3 years ago
Read 2 more answers
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