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3 years ago

One of the goals of the Federal Reserve is price stability. For the Fed to achieve this goal,

Business

1 answer:

rewona [7]3 years ago

5 0

Answer:

The correct answer is option C.

Explanation:

One of the goals of the federal reserve banks is to have price stability in the economy. Though price stability does not imply zero inflation. A small level of inflation is good for economy as it helps in growth of production.

So in order to acheive the goal of price stability, the rate of inflation should be low such as 1-3% and it should be consistent.

Very high inflation is harmful for the economy as it erodes the real income and wealth. Deflation is also not good for economy as it causes reduction in production and employment

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The market for carbon allowances

erik [133]

The market for carbon allowances is set by the regulatory authority.

3 0

3 years ago

Vnich of the following a Morales ik rom diving area

PtichkaEL [24]

Answer:

A. Distracting billboards

Explanation:

Billboards are huge advertisements placed on the roadsides. They promote products or brands of different companies. They also advertise events and popular venues. Billboards are for commercial use and located in urban centers.

Billboards are paid for; hence, they will be placed where there are likely to communicate to a broad audience. In rural areas, billboards are not economically viable due to the sparse distribution of people. For this reason, billboards do not pose any risks to people driving in rural areas.

Unpaved, poorly maintained roads, Poorly lit roads at night, and Wildlife or livestock crossing roads are characteristics or rural setting. Anyone driving in the upcountry is highly likely to encounter them.

8 0

2 years ago

Jen's Fashions is growing quickly. Dividends are expected to grow at a 19 percent rate for the next 3 years, with the growth rat

Sedaia [141]

Answer:

Ans. Current Share Price=$33.85

Explanation:

Hi, we first have to establish the dividend for the first 3 years and the dividend when the growth rate falls off to a constant rate of 8% with the formula to find the present value of a perpetuity with constant growth rate. From there, we need to bring all the above cash flows to present value and that is the price of the share. The formula is as follows.

$Price=\frac{D1}{(1+r)^{1}}+\frac{D2}{(1+r)^{2} } +\frac{D3}{(1+r)^{3} } +\frac{D3(1+g)}{(r-g)} \frac{1}{(1+r)^{3} }$

To find D1, D2,and D3, we have to do this.

D1=Do(1+0.19)

D2=D1(1+0.19)

D3=D2(1+0.19)

Since 0.19 is the growth rate for 3 years. Everything should look like this

$Price=\frac{4.04}{(1+0.12)^{1}}+\frac{4.29}{(1+0.12)^{2} } +\frac{25.52}{(1+0.12)^{3} } +\frac{25.52(1-0.08)}{(0.12+0.08)} \frac{1}{(1+0.12)^{3} } =33.85$

notice that the sign of the last part do not coincide with the formula, that is because the growth rate from the first 3 years is -8%.

Best of luck.

7 0

3 years ago

Bart is a lawyer and an employee of Alway, Inc. Bart is representing Alway in its purchase of Steel Co. Bart learns from Alway's

Vinil7 [7]

Answer:

C. be held liable under the misappropriation theory of insider trading.

Explanation:

Insider trading refers to the practice of utilizing confidential information that is not available for the public in order to make a profit in stock market. Currently, this action is deemed as illegal ever since the The Insider Trading Sanctions Act was created in 1984 .

The Security and Exchange omission created that act in order to ensure that no investors have to experience unfair situation in the market . Having confidential information will make it really easy for a person to predict whether the price of the stock will go up or down.

This can be seen In Bart's action. Pay attention to this part of the excerpt:

<em>Bart learns from Alway's company files that Steel Co. is in the final stages of negotiation for a highly profitable </em>

6 0

2 years ago

It takes 12 units of resources to produce 100 pounds of silk. It takes 13 units to produce 115 pounds of silk and 15 units to pr

stealth61 [152]

Because the additional output is produced with an increasing input in the production signals an example of <u>diminishing returns</u> to specialization.

<h3>What is a diminishing returns?</h3>

A diminishing returns to specialization is known to occurs if more units of resources are required to produce each additional unit.

In conclusion, the additional output which is produced with an increasing input in the production is an example of <u>diminishing returns</u> to specialization.

One of the goals of the Federal Reserve is price stability. For the Fed to achieve this​ goal,

One of the goals of the Federal Reserve is price stability. For the Fed to achieve this goal,