<span>Contractionary fiscal policy that reduces the budget deficit may INCREASE Business investment by REDUCING interest rates
when interest rates is low, people will feel ENCOURAGED to borrow some money from the bank and invest in the business because they will have lower amount to return.</span>
Answer:
I believe that it is A and C
Explanation:
The reason why the drivers fail to recognize Flora’s need of
assistance and help because of the rush hour that they are currently
experiencing. Rush hour is the time when there is a heavy traffic and it is
most likely makes the drivers more focus that they don’t have the time to pay attention
to other people or the surrounding around them. That’s why Flora is having a
hard time having or asking someone for assistance.
Answer:
an increase; an increase
Explanation:
Open market operations is a monetary policy instrument which is used by the Fed to control the money supply in an economy. In open market operations, there is a buying and selling of government securities from the public through banks.
If Fed purchases the government securities from the market then this will increase the money supply in an economy and there is a flow of money from Fed to public. This purchase of securities will also increase the reserves of the banks which they can utilized in lending to the individuals and other organisations.
Answer:
-0.20
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Cross Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 16 million - 14 million = 2 million
Average = (16 million + 14 million) / 2 = 15 million
2 / 15 = 0.133
midpoint change in price = change in price / average of both price
change in price = 1 - 2 = - 1
average of price =(2 + 1) / 2 = 1.5
-1/1.5 = -0.67
0.1333 / -0.67
