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Masteriza [31]
3 years ago
6

Refer to the diagrams. The numbers in parentheses after the AD1, AD2, and AD3 labels indicate the levels of investment spending

associated with each curve. All figures are in billions. If aggregate demand is AD3 and the monetary authorities desire to reduce it to AD2, they should
Business
2 answers:
maxonik [38]3 years ago
5 0

Answer:

Explanation:

Contractionary monetary policy is a type of economic policy that is been design to combat inflation which has to do with decreasing the supply money so that there will be an increase in the cost of borrowing which in turn make the GDP to decreases and inflations become dampens. The central bank and other monetary authorities reduces aggregate demand to AD2 from AD2 that it was, in turn, money in supply will decreases to $100 from that it was $120. This reduction will make a decrease in the way consumer spend. There will be a decrease in prices of commodities and output produced

FrozenT [24]3 years ago
4 0

Answer:

Decrease the money supply from $120 to $100

Explanation:

If the monetary authorities reduces aggregate demand from AD3 to AD2, money supply decreases from $120 to $100. This decrease will cause a decrease in consumer spending. There will be a reduction of price levels and real output.

This is also called contractionary monetary policy and it causes interest rate to be higher there by reducing investments.

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Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $8,000,000 and a current stock price of
Harrizon [31]

Answer:

$14.49

Explanation:

Present P/E ratio = Current stock price/(Net income/Shares outstanding)

Present P/E ratio = 14.75/($8,000,000/5,500,000 shares)

Present P/E ratio = 10.1406

EPS after 1 year = 8000000*125%/ 7000000

EPS after 1 year = 1.4286

Stock price = EPS after 1 year * Present P/E ratio

Stock price= 1.4286* 10.1406

Stock price = $14.49

8 0
2 years ago
Would you use Real GDP or Nominal GDP to accurately calculate growth in 2011? Explain in three to four sentences.
lesantik [10]
You would want to use Real GDP because it looks at the inflation and deflation due to price "changes" over the years. Nominal GDP only looks at the current market of today's economy. So with this being said you only want to use Real GDP if your looking back at the economy's history, but you would look at Nominal GDP if you wanted to know the current economy status.
3 0
2 years ago
Which statements are true? Check all that apply: C-corporations are subject to double taxation. LLCs are best for taking venture
Ronch [10]

Answer: All except " LLCs are best for taking venture capital" .

Explanation:

1. The corporations have to pay corporate tax and after that the stakeholders have to pay tax on their dividends. Hence they are subject to double taxation.

2. The number of partners in a general partnerships could be  greater than two.

3. In case of LLC and corporations, the entity is considered to separate from its owners. Hence the owners enjoy limited liability benefit.

4 0
3 years ago
Gabe's Granola Bars had coffee mugs created with their company logo and passed them out on a busy Saturday at a popular grocery
kozerog [31]

Answer:

It would be an example of advertising.

Explanation:

This is because Gabe's Granola Bars are giving coffee mugs with their logo at a grocery store, not their own location.

I hope this helped!

5 0
3 years ago
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taurus [48]
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3 years ago
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