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3 years ago

Classify each of the ofllowing as either a policy instrument or an intermediate target, and explain why?

Business

1 answer:

Solnce55 [7]3 years ago

5 0

Answer: The answers are given below

Explanation:

An intermediate target is a variable this isn't controlled directly under the central bank, but one that has a quick response to policy actions. e.g money supply.

A policy instrument is a tool used to manipulate a variable in the economy and achieve a desired objective. e.g. tax rates, interest rates, subsidies etc.

a. The ten-year Treasury bond rate

It is an intermediate target because isn't controlled directly under the central bank but can be linked to an activity in the economy.

b. The monetary base

This is a policy instrument because used to manipulate a variable in the economy and achieve a desired objective.

c. Ml

This is an intermediate target as it cannot be affected directly by the Federal tools.

d. The fed funds rate

This is a policy instrument as it can be affected directly by Fed tools.

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3 years ago

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Vinil7 [7]

Answer:

c) Adding additional project resources to the project

Explanation:

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References:

Dave. “A Step-by-Step Process of Dealing with a Project That Is Falling behind Schedule.” MyClientSpot Blog, 10 Sept. 2015

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2 years ago

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Answer:

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1 year ago

Financial statement data for years ending December 31, 2019 and 2018, for Edison Company follow: 2019 2018 Sales $513,500 $480,0

madam [21]

Answer:

The answer is

For 2018 - 1.5

For 2019 - 1.3

Explanation:

Asset turnover ratio=Net sales/average total assets

For 2018:

Sales - $480,000

Beginning asset - 360,000

Ending asset -360,000

Average total asset:

($280,000 + $360,000)/2

=$320,000

Therefore, asset turnover for 2018 is:

$480,000/$320,000

=1.5

For 2019:

Sales - $513,500

Beginning asset - $360,000

Ending asset - $430,000

Average total asset:

($360,000 + $430,000)/2

=$395,000

Therefore, asset turnover for 2019 is:

$513,500/$395,000

=1.3

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2 years ago

Suppose that consumption depends on the interest rate. how if at all does this alter the conclusions

zalisa [80]

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3 years ago