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irinina [24]
3 years ago
11

What is contractionary policy used for?

Business
1 answer:
Nata [24]3 years ago
4 0

Answer:

To fight rapid inflation

Explanation:

When government notice or discovers that the volume of money in circulation is on the high side, she uses contractionary policy to mop up the excess money in circulation. The aim is to reduce speculation and excess money supply in the economy.

Inflation is the rapid rise in the prices of goods and services which is due to too much money in circulation. When inflation is glaring in an economy, government uses contractionary policy such as increasing taxes and lowering government expenditure.

Increament in taxes would reduce the purchasing power of individuals , household and firms hence reduce the volume of money in circulation. Lowering government spending or expenditure will also reduce excess money in the economy because fewer money will be available in the economy by so doing.

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The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the
klemol [59]

Answer: 2.09

Explanation:

Given the following ;

Strike price (K) = $50

Price (c) = $6

Rate (r) = 6% = 0.06

Stock price (So) = $51

Time (T) = 1

Recall, relation for a put-call parity(p) is given by:

p + So = c + Ke^-(rT)

p = c + [Ke^-(rT)] - So

p = 6 + [50e^-(0.06 × 1)] - 51

p = 6 + [50×e^-0.06] - 51

p = 6 + (50 × 0.9417645) - 51

p = 6 + 47.0882267 - 51

p = 53.0882267 - 51

p = 2.0882267

p = 2.09

4 0
3 years ago
Ocean sediment cores provide a climate record for the past ________ years.
MrMuchimi

Ocean sediment core provides a climate record of the past 70 million years.

1880 is the reliable global record which we can say the climate began. Proxies(climate) helps the scientists to determine the climatic patterns even before starting record-keeping.

Some examples of proxies are sub-fossil pollen, lake and ocean sediments, tree rings, and ice cores. Climatic of the time influenced the growth rate of proxies material. It is from proxies where we can recover quantities of particular isotopes from climatic changes.

The combination of proxies can produce temperature reconstruction which is longer the instrumental temperature.

5 0
4 years ago
Read 2 more answers
What do the four functions of managment have in common
zzz [600]
They include: planning, organizing, leading, and controlling.
3 0
3 years ago
Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs are $75,000. The contribution
Irina18 [472]

Answer:

A. 52% and $11 per unit

Explanation:

The contribution margin ratio is a measure of how much of a business revenue is available for covering its variable expenses. It also reveals how much is left to cover its fixed cost. The contribution margin is the unit income generated from each product sold. To calculate contribution margin ratio we divide contribution margin by sales. i.e

Contribution margin ratio = (contribution margin)/sales

Contribution margin = (sales - variable expenses)/sales

OR

contribution margin = (selling price - average variable cost)/ selling price

Since selling price is $21 and average variable cost is $10

contribution margin = (21 - 10)/21

= 11/21

=52.38% or 0.5238

Contribution margin = $21 - $10

= $11

thus,   A. 52% and $11 per unit is the answer.

variable cost per unit also means average variable cost.

5 0
4 years ago
Of all students who do not complete high school cannot find work
Ket [755]
I think it might be B
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