Answer:
D) Movement along the demand curve for oranges and a shift in the demand curve for apples
Explanation:
From the question, there was an increase in the price of oranges due to the destruction of a large number of orange crops by the hurricane. This change in price of oranges resulted to an increase in demand for apples. Therefore, this event has resulted to a movement along the demand curve for oranges and a shift in the demand curve for apples. The movement along the demand curve for oranges occurred because the price of oranges sold changed and the quantity demanded changed also. This is in line with the original demand relationship. In other words, a movement usually occurs when there is a change in the quantity demanded of a particular good as a result of a change in its price, and vice versa.
The shift in the demand curve for apples is as a result of a fall in the demand for oranges and an increase in the demand for apple therefore the suppliers tend to supply more of apples in the market.
You are charged an early termination fee.
Explanation:
When you sign a contract you will have to see if y<u>ou are viable to pay an early termination fee in case you decide to terminate a contract</u> in between and if so how much it will cost to do so.
<u>There are no other legal obligations in place usually unless directly specified in the service contract. </u>
Usually the fee is to cover for the cost procured or that will be procured on securing newer services in the face of the termination.
Question:
Which of the following is an example of countercyclical monetary policy posing a danger of overreaction?
Select all that apply:
A) Loose monetary policy seeking to end a recession goes too far and triggers inflation.
B) Tight monetary policy seeking to reduce inflation goes too far and begins a recession.
C) Tight fiscal policy seeking to reduce inflation goes too far and begins a recession.
D) Loose fiscal policy seeking to end a recession goes too far and triggers inflation.
Answer:
The correct choices are: A) and B)
Explanation:
When the Federal Reserve System wants to curtail a possible recession it tweakes the system to allow more inflow of money into the economy. When money circulation is about to go out of hand, it mops up excess money in the economy by tweaking interest rates among other monetar policy tools.
This cycle may go out of hand if the the Fed miscalculate their actions by either allowing too much money in circulation for a long time or if they mop up too much money at a given period.
Cheers!