1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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:

You might be interested in
Did you receive less than 21 weeks of an unemployment insurance benefit payment for weeks between march 15, 2020, and june 26, 2
Galina-37 [17]

It is a true statement that people receive an unemployment insurance benefit payment for more than 21 weeks.

<h3>What is an unemployment insurance benefit payment?</h3>

This is a benefit that provide a temporary financial assistance to the unemployed workers who meet the requirements of State law.

In most states, the workers are eligible for up to 26 weeks of benefits from the regular state-funded unemployment compensation program.

Therefore, It is a true statement that people receive an unemployment insurance benefit payment for more than 21 weeks.

Read more about insurance benefit

<em>brainly.com/question/23586929</em>

#SPJ1

7 0
2 years ago
Question 1 Saved
Nadusha1986 [10]

Answer: Businesses sell goods and services in product markets.

Explanation: Circular flow diagram shows the flow of goods and services from Firms to the Households and Factors of production from the Households to the Firms. The firms money from the sale of those goods and services and the households get factor payment.

Thus, Business are sell goods and services in product markets in a circular flow diagram.

3 0
3 years ago
Suppose we have a 2-person world, with only Stephen and his friend LeBron. Suppose that Stephen can move 70 boxes or bake
USPshnik [31]

Answer:

the correct answer would be D  No, trade isn't possible, because Stephen has an absolute advantage in both making cookies and moving boxes.

Explanation:

Stephen can move 34 more boxes/hr and bake 19 more cookies/hr than Lebron can.

7 0
3 years ago
Read 2 more answers
At the beginning of the month, you owned $8,000 of General Dynamics, $7,000 of Starbucks, and $5,000 of Nike. The monthly return
guajiro [1.7K]

Answer:

= $406.6

Explanation:

To calculate return of portfolio we first calculate weight of each asset

this can be done by finding total investment and then dividing each asset by total investment.

Total investment = 8000 + 7000 + 5000 = $20,000

General Dynamics     8000/20000 = 0.4 = W1

Starbucks                    7000/20000 = 0.35 = W2

Nike                             5000/20000 = 0.25 = W3

Now for portfolio return we can use the formula

P(r) = W1 * (Return on W1 asset) + W2 * (Return on W2 asset) + W3 * (Return on W3 asset)

So,

P(r) = 0.4 * (0.0680) + 0.35 * (-0.0152) + 0.25 * (-0.0062)

This gives us

Total Return % = 0.02033 or 2.033%

Simply multiply this cumulative weight to total portfolio worth

Total Return in $ = 0.02033 * 20000  = $406.6

Hope that helps.

8 0
3 years ago
pencer Co. has a $300 petty cash fund. At the end of the first month the accumulated receipts represent 553 for delivery expense
otez555 [7]

Answer:

c) Credit to Cash for $242

Explanation:

Petty cash, beginning = $300

Delivery expense = $53

Merchandise inventory = $167

Miscellaneous expense = $22

Petty cash, Ending = $58

The journal to record the reimbursement of the accounts will be:

Event    Account Title and Explanation   Debit    Credit

1           Delivery expense                            $53  

           Merchandise inventory                   $167  

           Miscellaneous expense                  $22

                    Cash                                                   $242

4 0
3 years ago
Other questions:
  • Carl lives in a small new england town where he and other residents attend monthly town meetings. at these meeting they publicly
    5·1 answer
  • Franklin corporation is comparing two different capital structures, an all equity plan (plan 1) and a levered plan (plan 2). Und
    5·1 answer
  • Using the CAPM, compute the cost of equity capital for the lodging division at the target leverage ratio for the division. Expla
    6·1 answer
  • During an economic​ recession, A. the bond demand and supply curves both shift to the left and the equilibrium interest rate usu
    13·1 answer
  • Lake House. Harry has two houses, a house on the lake and a house in town. Rebecca wants to buy the house on the lake. Harry and
    12·2 answers
  • When Motorola first entered the Mexican marketplace, the company wanted direct control of salespeople in major urban markets but
    12·1 answer
  • Identify which of the following opening adjusting entries should be used when setting up in QuickBooks an existing company with
    9·1 answer
  • Which of the following describes a person's financial debt or obligation?
    13·2 answers
  • Is how much, or the quantity of a product or service that is desired by buyers at a given price.
    15·1 answer
  • the government decides what is produced, along with how much is produced. the government controls some aspects of the economy, s
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!