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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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Bridgette is a managerial accountant at the Middle Peninsula Manufacturing Company.​ Recently, Bridgette received a Certified Ma
Anettt [7]

Answer:

B. Institute of Management Accountants​ (IMA)

Explanation:

B. Institute of Management Accountants​ (IMA)

The Institute of Management Accountants is an institute where individuals are taught courses in accounting, financial accounting, management accounting, business studies, economic laws etc. This institute prepares the person to have professional study of all the managerial accounting practices involving different fields of study. There are three  basic stages, the first is the operational level, then the managerial level and the third is the strategic level. At each level a competitive exam is held to ensure the learning of accurate and high structured policies among emerging accounting managers.

It is a member of different  international accounting bodies and firms .

4 0
3 years ago
When practicing skills you should focus on _____________?
sesenic [268]
I believe the answer id D) all of the above.

the reason for this is because when you want to learn a skill you want to be able to actively know the skill and use it at will. you also need to be able to do it in an efficient manner and you also need to understand why you need this skill and why it is important for you to learn it.

i really hope this helped and have a nice day :)
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5 0
3 years ago
Read 2 more answers
Delta Insurers typically affirms or denies claims within 120 days after it receives proof of loss statements. Which statement is
laiz [17]

Answer:

Statement A

Explanation:

The 2 statements are:

A: The firm Delta Insurers typically affirms claims within 120 days after it receives proof of loss statements

B: The firm Delta Insurers typically denies claims within 120 days after it receives proof of loss statements

The explanation for this is:

- The company is an insurance company

- An insurance company holds funds for their customers; to be released when the customer is less privileged or in a bad situation, depending on the type of insurance made

- There is car insurance, house insurance, life assurance, etcetera.

- So if the insurance company receives proof of loss statements from the customer, it will release funds to solve the customer's dire need

- In this case, it takes 120 days to verify, process and then agree (affirm) to release funds (claims) to the affected customer.

So the answer is Statement A.

8 0
3 years ago
A creamery shop sells its special ice cream for $4.50 a quart. It costs them $3.00 a quart to make it. The daily demand for this
jenyasd209 [6]

Answer and Explanation:

The computation of the service level and the corresponding optimal stocking level is shown below:

Given that

Selling price = SP = $4.50

Cost price = CP  = $3.00

So,

Salvage value =  V  = $1.50

Average daily demand (d) = 35 quarts

The  standard deviation of daily demand  = 4 quarts

based on the above information

Overage cost = (Co) is

= CP - V

= $3.00 - $1.50

= $1.50

Now

Underage cost= (Cu)

= SP - CP

= $4.50 - $3.00

= $1.50

So,  

Service level is

= Cu ÷ (Co + Cu)

= 1.50 ÷ (1.50 + 1.50)

= 1.50 ÷ 3.00

= 0.50

= 50%

Now

At 50 % service level, the value of Z is 0

So,

Optimal stocking level is

= d + Z × standard deviation

= 35 + (0  × 4)

= 35 + 0  

= 35 quarts

7 0
3 years ago
What is the price​ level? The price level is​ ______. A. the average level of prices paid by urban consumers for all goods exclu
8_murik_8 [283]

Answer:

Price Level is B. The average level of prices

Explanation:

Price level is the average of current prices across the entire spectrum of goods and services produced in the economy.

Price level refers to the price or cost of a good, service, or security in the economy.

Reference: Kenton, Will. “Reading Into Price Levels.” Investopedia, Investopedia, 27 Sept. 2019

7 0
2 years ago
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