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Natalka [10]
3 years ago
6

Lower interest rates are part of tight money policy.

Business
1 answer:
AVprozaik [17]3 years ago
6 0

The statement, 'lower interest rates are part of tight money policy' is false.

<u>Explanation:</u>

Tight monetary policy which is also known as contractionary monetary policy is undertaken by Federal Reserve to reduce the economic growth that is overheated and to curb fast increasing inflation rate. Here the policy increases the interest rates thereby reducing the borrowing in the economy.

So, the true statement would be 'lowering the interest rates stimulates the borrowing in the economy and it is a part of the expansionary or loose monetary policy'.

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What is the price of a stock today if it pays a Dividend TODAY of $2. Its growth rate is 5%, and its market return is 12%?
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Answer:

$30.00  

Explanation:

The price of the stock can be derived from the stock theoretical price formula given and explained below:

stock price=expected dividend/(market return-growth rate)

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2 years ago
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3 years ago
Tammy's take-home pay is $800 a month. 7% of her take-home pay is spent on her cell phone bill. how much is tammy's monthly cell
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3 0
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Read 2 more answers
Oldham Corporation bases its predetermined overhead rate on a variable manufacturing overhead cost of $4.00 per machine-hour and
Rzqust [24]

Answer:

$21.42

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