Assume that each period's potential production increases by 4% as productivity rises. Each period, the money supply should be reduced by 4%.
<h3>How can monetary policy manage inflation?</h3>
One frequent strategy for managing inflation is to implement a contractionary monetary policy. By lowering bond prices and raising interest rates, a contractionary policy seeks to reduce the amount of money available in an economy. As a result, prices drop, inflation slows, and consumption declines.
<h3>Is the greatest approach to lower inflation through monetary policy?</h3>
Increasing interest rates in the economy and tightening monetary policy will help to lower inflation if it is too high, but they will also likely slow down economic development and increase unemployment.
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Based on the information given the current ratio is:1.4.
<h3>Current ratio</h3>
Using this formula
Current ratio=Current assets/Current liabilites
Where:
Current assets=$191,800
Current liabilities=$137,000
Let plug in the formula
Current ratio=$191,800/$137,000
Current ratio = 1.4
Inconclusion the current ratio is:1.4.
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Answer:
The correct answer is letter "B": nonphysical constraints.
Explanation:
According to the Theory of Constraints (TOC) a constraint is a limiting factor that does not enable companies to perform their work at their maximum capacity for their goals' achievement. In the same sense, nonphysical constraints are not material factors negatively influencing employees' actions. Wages cuts, reduction of benefits, unclear lines of command are examples of that kind of constraint.
Answer:
The answer is Imports are excluded in either net national item or total national output. Since these are not delivered inside residential outskirts nor by local individuals, henceforth, they are not responsible in GDP or GNP.
Explanation:
Merchandise and enterprises created outside a country's limits by the country's own residents and firms are incorporated into GNP yet are rejected from GDP. Merchandise and ventures delivered inside a country's limits by outside residents and firms are avoided from GNP yet are incorporated into GDP. Total national output (GDP) and Gross National Product (GNP) both endeavor to gauge the market estimation everything being equal and administrations delivered for conclusive deal in an economy. The distinction is the means by which each term translates what establishes the economy.
Answer:
Which party to the exchange must pay boot to make the exchange work?
- Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.
How much boot must be paid?
- $90,000 - $77,500 = $12,500
Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?
- Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500
Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?
- Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.