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3 years ago

Why does the government make changes to monetary policy?

Business

2 answers:

Whitepunk [10]3 years ago

5 0

Fiscal policy involves changing government spending and taxation. It involves a shift in the governments budget position. e.g. Expansionary fiscal policy involves tax cuts, higher government spending and a bigger budget deficit. Government spending is a component of AD.
Monetary policy involves influencing the demand and supply of money, primarily through the use of interest rates.
Monetary policy can also involve unorthodox policies such as open market operations and quantitative easing.
Monetary policy is usually carried out by an independent Central Bank^

motikmotik3 years ago

5 0

The correct answer was

A) to promote stability

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Elise is the marketing manager in a travel company. She is planning to place an advertisement in local newspapers to promote her

Scorpion4ik [409]

Answer:

The answer is C. link the advertisements to online promotions.

Explanation:

Now lets take a look at it one by one and see why C is the answer.

As in option A, she can ask a few friends whether they've seen the ad or not, but their replies would not accurately show the success of the promotion strategy.

In Option B, it take some time to measure the results and the quarterly sales numbers can be influenced by many factors and may not reflect the impact of this specific promotional campaign.

Option D is irrelevant, Elise's company sales and the sales of the newspapers are not related. So we can not take this as an answer.

Option C however is very applicable. If you link the advertisements to online promotions, when those who read the news paper comes to check the online promotion, we can see how well has the ad performed based on the number of online enrollments of the readers.

6 0

3 years ago

CarsRUs factors $800,000 of accounts receivable with recourse. The factor (buyer of receivables) charges a 3% finance fee and ho

Dmitry [639]

Answer:

$50,000

Explanation:

Calculation to determine the amount of the loss on sale of receivables that CarsRUs would recognize at the sale of its receivables

Using this formula

Loss on sale of receivables=[(Recourse Accounts receivable*Finance fee charges)+Estimated recourse liability]

Let plug in the formula

Loss on sale of receivables=(3%*$800,000)+$26,000

Loss on sale of receivables=$24,000+$26,000

Loss on sale of receivables=$50,000

Therefore the amount of the loss on sale of receivables that CarsRUs would recognize at the sale of its receivables will be $50,000

4 0

3 years ago

If five turkey club sandwiches cost $18.75, how much would seven sandwiches cost

N76 [4]

To find how much one costs, you divide the price by five
18.75 divided by 5 = 3.75
To find how much seven would cost, you multiply that number by seven
3.75 times 7= $26.25

8 0

3 years ago

Read 2 more answers

A company’s unit costs based on 100,000 units are: The normal unit sales price per unit is $165. A special order from a foreign

zysi [14]

Answer: $495,000

Explanation: Opportunity cost can be defined as the cost of profits that were foregone by choosing one alternative over other. It is a part of economic cost and is not considered while calculating the accounting cost.

In the given case, company has to forego the sale of 3000 units due to the special order production, thus, the lost sale of those 3000 units is the opportunity cost of fulfilling the special order.

This, can be computed as follows :-

opportunity cost = 3000 units * $165

= $495,000

7 0

4 years ago

As a financial analyst, you are tasked with evaluating a capital-budgeting project. You were instructed to use the IRR method, a

Vilka [71]

Answer: 9.25%

Explanation:

The Capital Asset Pricing Model (CAPM) can be used to find the expected return of a project which is another term for the hurdle rate. This can then be used in the IRR method.

Formula is;

Hurdle Rate = Risk free rate + Beta( Market rate of return - risk free rate)

Hurdle Rate = 4% + 0.75( 11% - 4%)

Hurdle Rate = 4% + 5.25%

Hurdle Rate = 9.25%

7 0

3 years ago