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
10

Suppose the government wants to change the level of output. If the LM curve is horizontal, then

Business
1 answer:
Feliz [49]3 years ago
7 0

Answer:

  • a. monetary policy is completely ineffective, whereas fiscal policy is highly effective.
  • a. monetary policy is completely ineffective, whereas fiscal policy is highly effective.

Explanation:

When the LM curve is horizontal, a change in money supply will not impact interest rates which would make monetary supply completely ineffective because people will be able to keep borrowing regardless of the money supply level in the economy.

If the IS curve is vertical, it means that output is independent of interest rates. This would again render monetary supply completely ineffective as output will not change as a result of a change in money supply. Fiscal policy will still work however because it would lead to more output being created via the multiplier process.

You might be interested in
Today is date 0. In 10 years, you plan to retire and buy a house in Norman, OK. In terms of a time line, you will retire at the
Marianna [84]

Answer:

$20,441.67

Explanation:

the present value of your house is $200,000, its future value = $200,000 x (1 + 5%)¹⁰ = $325,778.93

you can earn a 10% annual interest rate for 10 years, that means that we can use a future value of an annuity factor = 15.937

your annual investment = future value of the house / annuity factor = $325,778.93 / 15.937 = $20,441.67

6 0
3 years ago
Today, you have two coins each of which is valued at $100. One coin is expected to appreciate by 5.2 percent annually while the
ziro4ka [17]

Answer:

=$337.43

Explanation:

The value of each of the coins after 50 years is the future value after 50 years at their respective interest rate.

The formula for  future value is FV = PV × (1+r)n

For the first coin at 5.2 percent,

Fv = 100 x ( 1 + 5.2/100 ) 50

Fv =100 x (1+ 0.052) 50

Fv = 100 x 12. 61208795

Fv = $1,261. 21

For the second coin at 5.7 percent,

Fv = 100 x (1 + 5.7 /100)50

Fv =100 x (1 + 0.057 )50

Fv = 100 x 15.98

Fv = 1, 598. 64

the difference in value will be

=$1598.64 - $1,261.21

=$337.43

6 0
4 years ago
On April 1, Pujols, Inc., exchanges $590,000 fair-value consideration for 70 percent of the outstanding stock of Ramirez Corpora
Svet_ta [14]

Answer:

Closing NCI = $234,300 + $69,000 = $303,300

Explanation:

The Question is to identify the non-controlling interes in Ramirez Corporation

First we determine the Net income of Ramirez

Net Income = Revenues - Expenses

= $635,000 - $405,000 = $230,000

The next step is to dtermine the value of non -controling interest in teh net income of Ramirez.

Non-Controlling Interest in Net Income = NCI percentge x Net Income

= 30% x $230,000 = $69,000

Finally, based on these calculations , we can compute the Closing Balance of Non-Controlling Interest

The formula = Opening Non-Controlling Interest + Non-controlling Interest Share of Net income

Closing NCI = $234,300 + $69,000 = $303,300

3 0
3 years ago
What are some examples of trade controls?​
aleksandrvk [35]

The use oftrade controls to reduce foreign competition in order to protect domestic industries.

Hope this helps! :)

5 0
3 years ago
The ____ act criminalized securities fraud and stiffened penalties for corporate fraud.
Arte-miy333 [17]
I believe this is the Sarbanes Oxley act
3 0
3 years ago
Other questions:
  • The following ledger accounts are used by the Heartland Race Track
    8·1 answer
  • Which of the following is a potential benefit of inflation?
    5·1 answer
  • Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally
    8·1 answer
  • Larry Simmons has​ split-limit 150​/225​/110 automobile liability insurance. Several months ago Larry was in an accident in whic
    14·1 answer
  • Bolding Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $47,500. Assuming that the fixed monthly expe
    11·1 answer
  • An increase in price causes an increase in total revenue when demand is
    5·1 answer
  • Which one of the following statements is TRUE? a. A shareholder-friendly charter will make it harder for a company to be acquire
    5·1 answer
  • I always feel like throwing up in school. I tried chewing gun and having mints, but nothing is helping. Does anyone have and sug
    11·2 answers
  • What are the four bases of market segmentation?
    5·1 answer
  • A(n) ________ change involves introducing a practice that is new to the industry, such as using drones (rather than delivery tru
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!