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balu736 [363]
3 years ago
10

The Federal Reserve would most likely adopt a contractionary monetary

Business
2 answers:
Vedmedyk [2.9K]3 years ago
7 0

Answer:

a

Explanation:

sergey [27]3 years ago
3 0

Answer:

A. The country has a high inflation rate and rapid economic growth.

Explanation:

A contractionary monetary policy aims at limiting the amount of money supply in the economy. Contractionary monetary policies discourage banks from lending out money to businesses and households. If firms and individuals have no easy access to credit, the level of investments and consumption declines, resulting in slower economic growth.

Contractionary monetary policies are also used to tame a high inflation rate. Inflation is the general increase in prices in the economy. It may arise due to a high economic growth rate. Because contractionary policies decrease the supply of money in the economy, less liquidity reduces the aggregate demand, thereby curbing increasing prices.

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Complete the statements about the following three theories for the upward slope of the short-run aggregate-supply curve.
Strike441 [17]

Answer:

high,high

not all prices adjust quickly

below

Explanation:

According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too high.

Real wages decline as nominal wages are adjusted. As a result, the economy returns to full employment

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.

As people observe the lower price level, the economy returns to the long-run aggregate supply curve.

According to the misperceptions theory, the economy is in a recession when the price level is below what was expected.

As people observe the lower price level, their expectations adjust.

6 0
3 years ago
"The nature and purpose of the public sector result in a unique organizational characteristics". Discuss
alex41 [277]

The correct answer to this open question is the following.

Although the question is incomplete because it does not provide the location, country, or any other further reference, we can say the following.

The nature and purpose of the public sector result in unique organizational characteristics, basically in the formation of bureaucracies that are a form of governmental and administrative organizations with many employees and hierarchies that more that improve management and operations, complicate it and make it slow due to the fact that the number of people working is numerous.

Experts say that this is not the more efficient and effective form of managing governmental offices. On the contrary, it is slow and inefficient.

3 0
3 years ago
A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $
Ilya [14]

Answer:

d. $2,676

Explanation:

The computation of the horizontal value is shown below:

FCF1 = (100 × 1.06) = 106

FCF2  = (106 × 1.06) = 112.36

FCF3 = (112.36 × 1.06) = 119.1016

FCF4  = (119.1016 × 1.06) = 126.247696

FCF5  = (126.247696 × 1.06) = 133.8225578

Now

Horizon value is

= FCF5 ÷ (Cost of capital  - Growth rate)

= 133.8225578 ÷ (0.08  - 0.03)

= $2,676

Hence, the correct option is d.

4 0
3 years ago
A local car dealership's average customer comes in once every 10 years, and spends $30,000 on each purchase. An average customer
Papessa [141]

The lifetime value of a local car dealership for an average customer is $120,000.

<h3>What is meant by a lifetime value?</h3>

A lifetime value is an average amount that is being earned by the customer over the time period till its being a customer of a particular service.

Given values:

Amount spent by customer: $30,000

The average number of years: 40 years

Computation of lifetime value (LTV):

\rm\ LTV=\rm\ Average \rm\ number \rm\ of \rm\ years \times\ \rm\ Amount \rm\ spent \rm\ by \rm\ a \rm\ customer\\\rm\ LTV= 40 \times\ \$30,000\\\rm\ LTV=\$120,000

Therefore, when a customer spends $30,000 on a car dealership for 40 years of average time then its lifetime value would be $120,000.

Learn more about the lifetime value in the related link:

brainly.com/question/16926291

#SPJ1

5 0
1 year ago
Angelica and Celeste invested all their savings in a small pizzeria they opened outside the University of Missouri. They operate
Lunna [17]

Answer:

The correct answer is letter "A":  Lose their personal assets as the result of their company's financial problems.

Explanation:

A general partnership is the type of business that is set in a form in which all the individuals involved in the ownership of the business share the assets, profits, and legal liabilities. General partnerships are said to be <em>unlimited liable </em>since the <em>personal assets of the individuals involved can be taken into consideration in front of business obligations</em>.

6 0
3 years ago
Read 2 more answers
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