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2 years ago

The Fed wants to fight inflation. What action should they take regarding the discount rate, the RR, or open market operations?

Business

1 answer:

Sergio039 [100]2 years ago

4 0

Answer: See explanation

Explanation:

Inflation is when there's a general increase in the price level in an economy. To tackle inflation, the Fed can increase the interest rate as this will discourage people or firms from borrowing and hence there'll be a reduction in the money supply.

Also, the Fed can sell bond to the public, thereby taking in the cash in the economy and reducing the money supply thus reducing inflation. Lastly, the Fed can also increase the reserve ratio for banks. When this is done, there'll be lesser money available in the economy.

Read more on Aesthetic zoning here:

brainly.com/question/1326387

8 0

2 years ago

Tyler Young sells a diverse line of conveyor systems to small manufacturers. He has found that he is most successful when he use

WARRIOR [948]

Answer:

The correct answer is letter "C": consultative selling approach.

Explanation:

The consultative selling approach is a method of sale that requires vendor-customer engagement to provide consumer personalized experience by pointing out solutions out of open questions according to the customers' needs. Normally, vendors do not follow sales speeches to attract the consumers' attention but they improvise identifying the potential reason why customers would purchase a product.

3 0

3 years ago

Supply chain management refers to Question 13 options: A) how the firm compensates the employees who work on the firm's internal

Elden [556K]

Answer:

Explanation:

The decisions around which stages of production to handle internally and which to buy from others

5 0

2 years ago

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The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u

icang [17]

Answer:

A) NPV= - $428,888.89 B) Company would break Even if g = 5.68%

Explanation:

Hi, we have to bring to present value all the inflows and outflows of cash, this is the formula to use and the math of it.

$NPV=-Invesment+\frac{CashFlowYr1}{(return-growth)}$

$NPV=-1440000+\frac{91000}{(0.12-0.03)} = -428888.89$

The question says that "at what constant growth rate would the company just break even..." and well, a NPV=0 is not precisely break even, actually, it means that the company is obtaining exactly what is asking for any investment, but let´s assume that the question was, what should the growth rate be for the company to accept this project?. So we have to solve the first equation for "g", that is:

$g=\frac{(Invesment*return-CashFlowYr1)}{Invesment} =\frac{(1440000*0.12-91000)}{1440000} =0.0568$

So the constant growth rate has to be at least 5.68% for the company to accept this project (NPV=0)

Best of luck

6 0

3 years ago

Assume that Jocelyn is comparing two fixed-rate loan options, a 15 year and a 30 year mortgage. Both options have the same inter

Schach [20]

<span>Assume that Jocelyn is comparing two fixed-rate loan options, a 15 year and a 30 year mortgage. Both options have the same interest rate and amount borrowed. The 30 year, when compared to the 15 year loan will have a lower monthly payment and a higher total cost when repayment is completed.

The longer the spread of an annuity payment the lower the monthly payment and the higher the total cost of the loan.
</span>

6 0

3 years ago

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