Keeping the paint away from an open flame.
Answer:
D. The Fed decreases the discount rate relative to the federal funds rate.
Explanation:
The discount rate is the interest rate charged by the Central bank when commercial banks borrows funds from it.
When the discount rate is lowered, excess reserves increase and money supply increases.
The reserve requirement is the amount of deposits of commercial banks that should be kept as reserves. The higher the reserve requirement, the lower the money supply.
If banks hold more excess reserves, money supply falls.
An open market sale decreases money supply while an open market purchase increase money supply.
I hope my answer helps you.
Answer:
A) Recession
Explanation:
Recession is a term in economics that refers to a situation where there is decline in economic growth. Specifically a recession is said to have occurred if for two or more consecutive quarters a negative economic growth is observed meaning that there is a decline in the gross domestic product (GDP). The implication of recession is that companies have less cash and revenue, so they will seek to reduce cost by cutting down on wages and employment which will generally lead to reduced output, income and jobs. Recessions are usually triggered by financial crises in an economy and government usually tackles it by spending more and reducing the cost of taxes
Answer:
The correct answer is letter "D": political and legal.
Explanation:
Managers should not be discouraged in front of <em>new legislation</em>. In fact, new laws setting boundaries on businesses can be detrimental for those companies but immediately after the regulations are enacted, firms should find out if the political environment of that law has grey areas that help companies to surpass them.
Besides, the social environment where the firm operates can offer companies other opportunities for the fir to grow. Research must be meticulously conducted under this scenario to find out new profit sectors in the market before making radical decisions such as stopping the operations of the entity.
