Answer: Monetary policy has a long outside lag.
Explanation:
The options are that:
a. It wants to avoid time inconsistency problems.
b. It takes time for the Central Bank to implement its policy decisions.
c. Monetary policy has a long outside lag.
d. Forecast errors are often rather large.
Monetary policy is the use of interest rate and the supply of money to control the economy. Optimal monetary policy helps to maximizes the welfare of individuals and firms given the frictions that occur in the economic environment.
Under optimal monetary policy, the central bank adjusts its policy based on anticipated rather than current inflation and output gaps because monetary policy has such long outside lags. It has a long outside lag because they mainly affect the investment plans of business and a change in the rate of interest might not really have a full effect on the spending on investment for several years.
Using the straight line method
Depreciation per year
295,000÷5=59,000
Accumulated depreciation for 3 years
59,000×3=177,000
Book value of the equipment
295,000−177,000
=118,000
A SWOT analysis will identify Mcfarlane as a STRENGTH.
SWOT analysis refers to a study that is usually undertaken by companies in order to identify its internal strengths and weaknesses as well as its external opportunities and threats. In the question given above, Mcfarlane is a strength to his company because his efforts are beneficial to the company.
Answer:
$15,000
Explanation:
The computation is given below:
The goods available for sale is
= $40,000 + $480,000
= $520,000
And the sales is $620,000
So, the gross profit
= $620,000 × 25%
= $155,000
So, the cost of goods sold is
= Sale - Gross profit
= $620,000 - $155,000
= $465,000
Now the ending inventory is
= $520,000 - $465,000
= $55,000
And, the reimbursement amount is
= ($55,000 - $5,000) × 70%
= $35,000
So, the loss from the explosion is
= $55,000 - $5,000 - $35,000
= $15,000
Recovery, Prosperity, Recession and Depression
