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
dem82 [27]
3 years ago
8

In the short run, open-market purchases a. increase investment and real GDP, and decrease interest rates. b. increase real GDP a

nd interest rates, and decrease investment. c. increase investment and interest rates, and decrease real GDP. d. decrease investment, interest rates, and real GDP.
Business
1 answer:
navik [9.2K]3 years ago
8 0

Answer: a. increase investment and real GDP, and decrease interest rates.

Explanation:

During an Open Market Purchase, the central bank of the country would be buying back securities from the public which means that it would be infusing money into the economic system.

With an increased amount of money in the economy, people will be able to save more which means that interests rate will drop because there are now more loanable funds. This drop in interest rates will encourage more companies and people to borrow cash for investment which will then lead to a higher GDP.

You might be interested in
Too little money makes prices fall, which is bad. But printing more money, when there isn't more production, makes prices rise,
jeyben [28]

Determining how much money to print is a complex process that requires balance.

Answer: Option A.

<u>Explanation:</u>

Economics is the study of the economy and the processes that the economy is involved into which include the production, the consumption, and the distribution of the goods and the services in the economy.

It is related and the study of the activities which are related to money. Thus it is the related with the growth and development of the economy. So the study of economy is a very complex study and there should be a proper balance maintained in it.

8 0
4 years ago
Candy Canes Inc. spends $100,000 to buy sugar and peppermint in April. It produces its candy and sells it to distributors in May
Pie

Answer:

April,

  • Sales is zero
  • Net income is zero
  • Net cash flow is an outflow of $100,000 (used in the purchase of raw materials)

May,

  • Sales is $150,000
  • Net income is $500,00
  • Net cash flow is zero

And in June;

  • Sales is zero
  • Net income is zero
  • Net cash flow is an inflow of $150,000 (amount received from customers)

Explanation:

In April, the company purchased raw materials (Sugar and Peppermint) for $100,000. The entries posted are debit to Inventories and Credit to Cash account (both amounting to $100,000 each).

As such in April,

  • Sales is zero
  • Net income is zero
  • Net cash flow is an outflow of $100,000 (used in the purchase of raw materials)

It produces its candy and sells it to distributors in May for $150,000, but it does not receive payment until June.

When the sale is made in May, the entries required is Debit accounts receivables $150,000 and Credit Sales revenue $150,000. Also, Debit cost of goods sold $100,000 and Credit Inventories $100,000.

Net income is the difference between sales and cost of sales.

As such in May,

  • Sales is $150,000
  • Net income is $500,00
  • Net cash flow is zero

For June,

Payment for goods sold in May were received, entries posted are debit to cash account and a credit to accounts receivables (both balance sheet accounts), hence;

  • Sales is zero
  • Net income is zero
  • Net cash flow is an inflow of $150,000 (amount received from customers)
6 0
4 years ago
Heather's Auto Body purchased new equipment with 90 days same as cash. What workflow would you recommend so she can set aside th
Ahat [919]

Answer:

1. To match your bank register with your bank statement; 2. the Deposit to account is Undeposited Funds

8 0
3 years ago
Read 2 more answers
The average management fee for all mutual funds is:
polet [3.4K]
The best choice is C, 0.50% to 1.25%, because they are only allowed to do roughly about 1% on mutual funds by state requirements and laws in the United States and other major economic groups. This interval is best because A is insanely low on mutual funds and would make the nation impossible to sustain itself, B is a bit too low, and D is absurdly high because 2.50% is a violation. Found this helpful? Give it a Brainiest Award.
7 0
3 years ago
One of the sales consultants at Ebhayi furniture store is performing very poorly. She arrives late for work and phones in sick a
klasskru [66]

Explanation:

i will give many works like carpenter and also I give her my position just for one day to maintain the shop . I think if she do shop owner's work she will definitely understand it and she becomes change

(or)

I will bring the same worker like she and the staff will behave rude to her and she becomes change if she understand the rude staff disturbance that how all staffs and customers feel like her. one day her behaviour will change

8 0
3 years ago
Other questions:
  • PA11.
    15·1 answer
  • Roasters Corporation and Outdoor Barbecues, Inc, enter into a contract for a sale of a commercial grill. The contract requires R
    6·1 answer
  • Meatpackers, Inc., enters into a contract with Nevada Ranch for the delivery of a certain number of beef cattle on a set schedul
    5·2 answers
  • An example of physical capital would be: a truck a worker buys for personal use like hunting, going to work, or going to the bea
    14·1 answer
  • Civil rights laws protect against discrimination in all but what area?
    9·1 answer
  • eorge and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy). They also receiv
    6·1 answer
  • Toro decided to augment its traditional hardware retail distribution channel by also selling through mass merchandisers such as
    11·1 answer
  • Williams Inc. is expected to pay a $5 dividend next year and that dividend is expected to grow at 2.5% every year thereafter. If
    11·1 answer
  • Discarded materials ​
    15·1 answer
  • what are the two factors that go into which item is thought of as bought first, etc., when choosing between several possible pur
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!