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qwelly [4]
2 years ago
7

If the Fed increases its open market purchases of government securities, it exerts a downward pressure on real interest rates. S

uch a phenomenon is usually referred to as the ______________________ effect.
Business
1 answer:
8_murik_8 [283]2 years ago
8 0

Answer:

Liquidity Effect

Explanation:

The liquidity effect is one of the resulting outcomes of the government policies which increases money in the economy system. However, the liquidity effect is the cause of the reduction in the real interest rates.

Therefore, If the Fed increases its open market purchases of government securities, it exerts downward pressure on real interest rates. This situation is commonly referred to as LIQUIDITY EFFECT.

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This 18th century economist coined the term "invisible hand," a metaphor representing the natural forces that drive individuals
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This 18th-century economist is Adam Smith who is hailed the Father of Economics. In his 1776 book  "An Inquiry Into the Nature and Causes of the Wealth of Nations" Smith argues that society benefits in a free economy in which individuals are motivated by their own self-interest which unintentionally benefits society as a whole. Smith's aim using the term moreover was to attack the mercantilist system which was prevalent during his time. 
8 0
3 years ago
During which stage of team development is there a high dependence on the leader for guidance and direction as there will be litt
Daniel [21]

During Forming stage of team development is there a high dependence on the leader for guidance and direction as there will be little agreement on team goals.

Because the forming stage involves a period of orientation and getting acquainted. Uncertainty is high during this stage, and people are looking for leadership and authority. High dependence on the leader for guidance and direction. Little agreement on team objectives other than those received from the leader. Individual roles and responsibilities are unclear.

Orientation is the act or process of orienting or the state of being oriented.

Leadership is the art of motivating a group of people to act toward achieving a common goal.

Responsibilities are the quality or state of being responsible.

To know more about the Orientation here

brainly.com/question/12049504

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6 0
1 year ago
Firms that follow variable-cost pricing Multiple Choice sell their products at lower net prices abroad than in the domestic mark
IgorLugansk [536]

Answer:

Sell their products at lower net prices abroad than in the domestic market

Explanation:

Variable costing is a product costing method where only the variable manufacturing cost like the cost of direct materials ,labor and the variable manufacturing overhead are factored into the cost of production. This does not consider a complete cost like the absorption method of costing and as a result , the final overall cost is lower,

Using variable cost males it possible to sell products at lower net prices abroad compared to the domestics market as the tax laws of various country requires absorption method , hence it is not captures using variable costing.

7 0
3 years ago
The table below shows a summary of Kaitlin's credit card statement for the month of February.
den301095 [7]

Answer:

A) 32 percent interest B) Yes it will be paid

Explanation:

23 times 42 divided by 7

6 0
3 years ago
What’s behind gas prices
MArishka [77]

Answer:

taxes

Explanation:

there is federal, state, and government taxes included in your gas price

hope this helps :)

3 0
2 years ago
Read 2 more answers
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