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Oliga [24]
3 years ago
5

M1 money growth in the u.s. was about 16% in 2008, 7% in 2009, and 9% in 2010. over the same time period, the yield on 3-month t

reasury bills fell from almost 3% to close to 0%. given these high rates of money growth, why did interest rates fall, rather than increase?
Business
1 answer:
posledela3 years ago
7 0
M1 money growth in the US was about 16% in 2008, 7% in 2009 and 9% in 2010. Over the same time period, the yield on 3-month Treasury bills fell from almost 3% to close to 0%. Given these high rates of money growth, why did interest rates fall, rather than increase? What does this say about the income, price level and expected-inflation effects?
Higher money growth (increase in the money supply) should have the following effects:
Liquidity effect indicates that this growth in money should shift money supply to the right, which should decrease the interest rate.
Income effect indicates that the growth in money should increase income levels, which should increase the demand for money and shift the demand curve to the right. This should increase the interest rate.
The price level effect indicates that the growth in money should increase price levels, which should increase the demand for money and shift the demand curve to the right. This should also increase the interest rate.
During this time period, unemployment was high, economic growth was weak and policymakers were more concerned with deflation than they were with inflation.
Therefore, the expected inflation effect was almost non-existent (due to the concerns with deflation) and the liquidity effect dominated all other effects, which made interest rates fall.
<span>This is illustrated with the first graph on slide 32 of the Theory of Money Powerpoints.</span>
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Jean told her stockbroker to purchase 300 shares of stock of company abc at $20 per share. the fee that the stockbroker charges
Varvara68 [4.7K]

Jean told her stockbroker to purchase 300 shares of stock of company abc at $20 per share. The fee that the stockbroker charges for this service is called Commission. Hence, option D is correct.

<h3>Who is stockbroker?</h3>

Stockbroker is the person who execute the shares and invest in them on the behalf of their clients. Stockbroker has certain knowledge about the trading of shares, so using their ability of understanding the stock market.

Many of the stockbroker works for the firm or company and handle their customer's accounts and do tradings.

Thus, option D is correct.

For more details about Stockbroker, click here:

brainly.com/question/110788

#SPJ1

a. Dividend

b. Yield

c. Net Proceeds

d. Commission

6 0
2 years ago
What does NBT stand for?<br>For Life Orientation<br>​
expeople1 [14]

Demystifying the NBTs | National Benchmark Test Project.

5 0
3 years ago
Short-term, intermediate-term, and​ long-term goals are similar in that all represent important financial objectives to be accom
lbvjy [14]

Answer:

Though its not explicity mentioned in the question, I am assuming you want to know the correct option. The correct option in this case is option 2.

Explanation:

As stated in the question, the difference in classifying goals as either long term, short term or intermediate depends on the time frame involved.

Short term goals can be achieved in a few months generally and are set to define goals with the time horizon of a maximum of 1 year.

A long term goal, as the term suggests, is one that takes a significant amount of time. Generally, long term goals are set using a time frame of 10 years.

Given that long term goals cover a longer time period while a short term goal covers a span of 1 year, individuals many times set intermediate goals to keep them motivated. Intermediate goals therefore generally cover a time frame of 2 to 5 years.

Therefore, in the context of the question, these three types of goals can take from 1 to 10 years to accomplish

6 0
4 years ago
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South
bekas [8.4K]

Answer:

(1) 6%; 1.7; 10.20%

(2) 3%; 4; 12%

Explanation:

ROI = Margin × Turnover   (Note Margin in % and Turnover in Ratio)

Where,

Margin = Net operating income ÷ Sales  

Turnover = Sales ÷ Average operating assets

For Queensland:

Margin = 54,060 ÷ 901,000

            = 6% (approx)

Turnover = 901,000 ÷ 530,000

               = 1.7

ROI = 6% × 1.7

      = 10.20%

For New south wales:

Margin = 74,400 ÷ 2,480,000

            = 3% (approx)

Turnover = 2,480,000 ÷ 6,20,000

               = 4

ROI = 3% × 4

      = 12%

3 0
3 years ago
Which of these is the largest difference between developed and developing countries?
Nuetrik [128]
<span>As there is no set of options given with the question, we'd go with one difference which is most conspicuous between the two types of countries. That difference is the standard of living and amenities in the incone range of the masses. In developing countries, people still have to give up on necessary amenities which are normal to have in developed countries.</span>
8 0
3 years ago
Read 2 more answers
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