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skad [1K]
2 years ago
10

In the late 1970s Federal Reserve Chairman Paul Volcker contracted the money supply to reduce the rate of inflation. One result

of this monetary policy was: ANSWER Unselected to increase interest rates which reduced aggregate demand. Unselected to reduce interest rates and stimulate aggregate demand. Unselected higher real output for the U.S. during the next few years. Unselected I DON'T KNOW YET
Business
1 answer:
xxTIMURxx [149]2 years ago
8 0

Answer: to increase interest rates which reduced aggregate demand.

Explanation:

Since the money supply was contracted to reduce the rate of inflation, this will lead to increase interest rates which reduced aggregate demand.

In this case as a result of the increase in the interest rate, people will prefer to save their money in the banks and thus will result in less money in circulation which ultimately reduces the demand for goods and services.

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Answer:

This illustrates the principle that;

c.people face trade-offs.

Explanation:

Commercial transaction especially in business involve various situations that can mirror underlying economic principals, An example of the many economic principals is trade-off. This principal is explained in detail below;

1. Trade-off

A trade-off is a compromise between two desirable products that are incompatible. A trade-off usually involves the foregoing of one choice for the other, it usually involves the sacrifice of one of two products which have the same qualities but one only limited to picking one choice. A trade-off usually happens in business dealings. An example is a situation where one needs to purchase two items that have the same cost and the amount of money the buyer wants to buy can only be enough for one of the products. In this case, the buyer will have to sacrifice one product for the other based on the prevailing financial status limiting him/her from purchasing both of them.

Lawrence's case is a classic trade-off scenario since he is torn between buying a flash for his camera or a new tripod. He needs both of them with equal measure but he can only afford one at a time. This means that he will have to choose one over the other, a principle known as a trade-off.

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3 years ago
Tom is teaching jenny how to ice skate. both skaters, who are about the same size, are on the ice and wearing their skates. to h
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Jenny will move forward and Tom will move backwards.
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3 years ago
A central bank would like to increase the money supply in the country. It
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answer is A open market operations

Explanation:

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3 years ago
In economics what helps boost the standard of living and is thus the goal of most countries
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In macroeconomics, the goal is to increase the GDP of the country's economy. This is one of the goals in socioeconomic aspect. However, others would include infrastructure, exportation of goods and investors.Thank you for your question. Please don't hesitate to ask in Brainly your queries. 
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Suppose, that after a successful career, a worker retired precisely as planned with precisely the amount saved that they intende
IgorC [24]

Answer: Yes it is

Explanation:

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If a person for instance, knows that they will receive a pay cut at the end of the year, they will probably spend less today to survive the pay cut.

Same goes for the worker in this scenario. They know that the amount they saved is all they have now and into the future so they are adjusting their expenses to ensure they survive on that saving.

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3 years ago
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