1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
soldier1979 [14.2K]
3 years ago
15

Suppose foreigners find U.S. goods and services more desirable for some reason other than a change in the exchange rate. Which p

olicies could be used to offset the resulting change in output? a. a decrease in the money supply and a decrease in government purchases. b. a decrease in the money supply and an increase in government purchases. c. an increase in the money supply and a decrease in government purchases. d. an increase in the money supply and an increase in government purchases.
Business
2 answers:
Mashcka [7]3 years ago
8 0

Answer:

The correct answer is option a.

Explanation:

If foreigners find US  goods and services more desirable, they will demand more of these goods and services. The price level will increase. The domestic firms will start producing more to earn higher revenue and profits. The output level will increase.

To offset this increase in output the government will decrease money supply in the economy. To do so the government can adopt several measures. Government can adopt contractionary monetary or fiscal policy. Government can reduce money supply by reducing purchases.

alekssr [168]3 years ago
5 0

Answer: Option (a) is correct.

Explanation:

Correct Option:  A decrease in the money supply and a decrease in government purchases.

If US goods and services are more desirable for foreigners then the exports of united states increases. Therefore, the earnings from the exports increases and hence, there will be more money in the market which increases the money supply in an economy.

So, the fed uses the Contractionary monetary policy and fiscal policy to offset the resulting change in output.

∴ Contractionary monetary policy will results in decrease in the money supply and Contractionary fiscal policy will results in decrease in government purchases.

You might be interested in
The purchasing agent of the Clampett Company ordered materials of lower quality in an effort to economize on price and in respon
gizmo_the_mogwai [7]

Answer:

The correct answer is: Materials Price Variance: Production Manager

Materials Quantity Variance: Purchasing Agent

Explanation:

The production manager had to buy the materials that are commonly used, as this is an item of great importance in the process of converting the materials, since otherwise there is a risk of becoming waste due to their quality. In the case of the variation presented, each manager or person in charge of the area must supervise that the measurements are well calculated, and that the aspects related to the direct process must be effectively ensured for the good of the operation.

7 0
4 years ago
A firm with an A rating plans to issue one million units of a 10 year-4% bond with face value $100. After the financial crisis t
GenaCL600 [577]

Answer:

a)$103.309 million initially b)$83.309 million c)240070 bonds more

Here is the complete question:

A firm with an A rating plans to issue one million units of a 10 year-4% bond with face value $100. After the financial crisis this firm is downgraded to a B rating. The yield curve increases 0.2% per year. The yield for year 1 is y1=1%, for year 2 is y2=1.2%, y3=1.4% and so on and y10=2.8%. The default spreads are given in the table below.

(a) What is the initial amount (before downgrading) the firm wants to raise?

(b) How much can this now B rated firm raise?

(c) If the firm wants to raise the planned amount, how many more bonds does it issue?

Rating Default spread

AAA 0.20%

AA 0.40%

A+ 0.60%

A 0.80%

A- 1.00%

BBB 1.50%

BB+ 2.00%

BB 2.50%

B+ 3.00%

B 3.50%

B- 4.50%

CCC 8.00%

CC 10.00%

C 12.00%

D 20.00%

Explanation: The explanation is found in the attachment

8 0
3 years ago
Oriole’s Electronic Repair Shop started the year with total assets of $300000 and total liabilities of $208000. During the year,
AVprozaik [17]

Answer:

$154,700

Explanation:

The computation of the change in amount is shown below

But before that first find out the ending capital balance which is

= (Total assets - total liabilities) + (revenues - expenses) - drawings

= ($300,000 - $208,000) + ($523,000 - $319,000) - $49,300

= $92,000 + $204,000 - $49,300

= $92,000 + $154,700

= $246,700

Now the change in capital balance is

= Closing balance - opening balance

= $246,700 - $92,000

= $154,700

7 0
4 years ago
Frank age 63 is single and provided all of the support for his daughter Anna age 24 and her son Marvin age 6. Neither Anna nor M
allsm [11]

Frank cannot claim Anna or Marvin as a dependent.

Explanation:

Because Frank gives Anna and Marvin every support, support tests are straightforward.

Anna earns revenue in excess of $4200 and can not therefore be requested as dependent. In fact, Marvin does not stay with Frank and can not therefore be stated as dependent.

The income tax credit, EITC or EIC is a bonus to low- and moderate-income employers. To apply, you must fulfill certain criteria and file a tax report, even if you are not obliged to pay a bill. The level of tax you pay is lowered by the EITC and a refund is probable.

3 0
4 years ago
Which of the following is a potential safety hazard?
maxonik [38]

Umm... I can't find the choices... So, those are the choices I made up that are correct to your question.


  • Spills covering grounds or falling hazards, such as blocked paths or cords going over the ground.
  • Working from heights, including ladders, scaffolds, roofs, or an elevated workspace.
  • Unguarded device and moving machine pieces; guards dismissed or moving pieces that a worker can unintentionally touch.
6 0
3 years ago
Read 2 more answers
Other questions:
  • Assume the return on a market index represents the common factor and all stocks in the economy have a beta of 1. Firm-specific r
    5·1 answer
  • You are to make monthly deposits of $700 into a retirement account that pays an APR of 10.2 percent compounded monthly. If your
    5·1 answer
  • 3. Who creates budget resolutions?​
    7·1 answer
  • For homeowners in upper-income brackets whose gains exceed $500,000 ($250,000 for a single taxpayer), the capital gains tax rate
    14·1 answer
  • Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies fo
    12·1 answer
  • Which statement is correct in regard to renting a home?
    15·1 answer
  • Josh is a technological expert whose work with advanced broadband systems has made him one of the most high-profile figures at T
    10·1 answer
  • Consider two policies: a tax cut that will last for only one year and a tax cut that is expected to be permanent. True or False:
    8·1 answer
  • the true statement from the list below, regarding the Contribution Format Income statement. Multiple Choice The Contribution For
    10·1 answer
  • marginal revenue for the perfectly competitive seller is blank price, whereas for the monopolist it is blank price
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!