Answer:
d. Reduce average Inventory
Explanation:
Inventory turnover ratio represents how quickly an entity's inventory is converted into sales and cash is generated.
Inventory turnover in days is computed as;
= 
Inventory turnover ratio can be computed as:
= 
Average stock = 
wherein, Op stock = Opening stock
Cost of Goods Sold = Sales - Gross Profit
A reduction in the average inventory level would increase the inventory turnover ratio, and thus reduce the inventory conversion period from 80 days to a lower level.
Changing in response to the supply-side policy.
<h3>What causes a movement along the Phillips curve?</h3>
- An increase in AD is a shift from point A to point B. Inflation rises, and the jobless rate falls when AD rises. A shift from point A to point C corresponds to a reduction in AD.
- The Phillips curve is a diagram that illustrates the economic link between the rate of unemployment and the pace at which wages are changing in terms of money. It reflects the belief of economist A. William Phillips that wages tend to increase more quickly when unemployment is low.
- According to the Phillips curve, unemployment and inflation are inversely related. Lower unemployment is correlated with higher inflation, and vice versa.
A movement along the phillips curve shows that the unemployment rate and inflation rate are.
Changing in response to the supply-side policy.
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Before 2008, the investment bankers thought that buying home mortgages was a good and safe investment because it was a stable investment, which is less impacted by inflation.
The “subprime” mortgages were more riskier than “prime” mortgages because the lender were more likely to default the mortgage.
<h3>What was the event "
Crisis of Credit" about?</h3>
The Crisis of Credit, also known as the financial crisis of 2008 or Global Financial Crisis referred to a severe worldwide economic crisis that occurred in the early 21st century. It was considered the most serious financial crisis since the Great Depression (1929).
In 2008, the financial crisis began with cheap credit and lax lending standards that fueled a housing bubble. When bubble burst, all banks were left holding trillions of dollars as worthless investments in subprime mortgages and the Great Recession that followed cost many their jobs, their savings and their homes.
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Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off she found online. She selects and purchases a $35 pair of jeans, pre-discount.
(Alice's consumer surplus, $5)
<span>Jeff finds some steaks for $16 for which he would have been willing to pay $20. The butcher notices the meat is near the expiration date and gives him an extra 75% off. </span>
(Jeff's consumer surplus, $16)
<span>Nicole has in her possession a hockey puck from the 2010 Winter Olympic Games and sells it on eBay. She will only sell the puck if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $500. </span>
(Nicole's producer surplus, $0)
<span>Claire is trying to sell her used calculus textbook online. She asks for $150 or best offer and is willing to sell for anything over $100. She is able to sell it for $125. </span>
(Claire's producer surplus, $25)
<span>Roy is willing to pay $2.50 for a sports drink. He notices the price is $2.79 and chooses not to purchase a sports drink. (Roy's consumer surplus, $0)</span>
<span>This would be a way to lower the money supply. By discouraging bank loans, there becomes fewer overall dollars in the hands of the general public. Fewer dollars held by people overall equals a smaller overall money supply. Bank loans to the public would be a way of increasing the money supply, in the opposite instance.</span>
