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AveGali [126]
3 years ago
14

A. Suppose there is a surge in consumer confidence that creates an increase in aggregate demand in the economy. The Federal Rese

rve estimates that a change in the money supply of $120 billion will adjust interest rates enough to offset the change in aggregate demand. If the reserve requirement is 25%, what action should the Fed take to reach the desired change in the money supply?
The Fed should conduct an (open market purchase / open market sale) of $______ billion.



b. Suppose there is a political crisis in Europe that causes a reduction in investment demand in the United States. To stimulate investment demand, the Federal Reserve decides the money supply needs to change by $150 billion. If the reserve requirement is 10%, what action should the Fed take to reach the desired change in the money supply?

The Fed should conduct an (open market purchase / open market sale) of $_____ billion.
Business
1 answer:
grigory [225]3 years ago
6 0

Answer:

a. Open market sale of $30 billion

b. Open market purchase of $15 billion

Explanation:

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Increasing your 401k deduction will ________ your take-home pay and __________ your federal taxes in the current year.
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Which of the following is the correct formula for profit?
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(Sales volume * Price) – (Variable costs + Fixed costs)

Explanation:

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(Sales Volume x Price) - (Variable Costs + Fixed Costs).

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On January 1, Year 1, the Hoverman Corporation made amendments to its defined benefit pension plan, resulting in $150,000 of pas
Lapatulllka [165]

Answer:

Check the explanation

Explanation:

a)

In IFRS according to IAS 19 all past service cost is recognized in the net income in the period in which amendment (change) is made by entity for defined benefit pension, it does not matter what is the status of the employees who will benefit the change. So in Year 1 $150000 will be expended completely and in subsequent years the amount is $0

Year 1 =$150000

Subsequent years= $0

b) In US GAAP the past service cost is recorded in Accumulated other comprehensive income in the year of amendment. It is amortized over the future working life of the participants.

Year 1 is year of adoption hence $0 is amortized because $150000 is included in Accumulated other comprehensive income.

Subsequent years: (150000/10=15000) $15000 will be amortized for each year for 10 years.

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