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scoray [572]
2 years ago
5

There are three main reasons why monetary policy doesn’t always work. Match each reason with its explanation.

Business
1 answer:
evablogger [386]2 years ago
8 0

Answer:

3. People don’t act as the Fed hopes.

a. The Fed can create conditions meant to encourage people to, for example, borrow more money. But if people are fearful of going into debt when their employment situation is uncertain, they may not respond to the Fed’s incentives.

  • people make heir personal decisions based on what they expect to happen in heir future

1. The long run is different from the short run.

b. Although an expanded money supply can briefly stimulate economic growth, eventually the economy will return to the same level of productivity, just at higher prices for goods and wages.

  • equilibrium is the key word regarding the long run

2. People adjust their expectations.

c. Fed actions are most effective when they come as a surprise. When people have figured out in advance what the Fed is going to do, the Fed’s actions don’t have as much impact.

  • People's expectations can result in the failure of economic policies. For example, if households expect higher inflation, they might take loans or accelerate their purchases.

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uysha [10]
All of the given questions are part of the critical questions that entrepreneurs need to ask themselves. Being an entrepreneur needs a lot of thinking and planning and these questions should be taken into account. Running a business would include the location fit for the type of business you have, the structure of your business, how you recruit workers and the incentives you give them, and most importantly, your capital.
6 0
3 years ago
Your debit card is stolen, and you report it to your bank within two business days. How much money can you lose at most?
AveGali [126]
This depends on what the daily limit is for your card.

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5 0
3 years ago
Read 2 more answers
In its first year of operations Best Corp. had income before tax of $540,000. Best made income tax payments totaling $177,000 du
hodyreva [135]

Answer:

$378,000

Explanation:

Best Corp. has income before tax of $540,000.

The tax rate is 30%.  the amount of tax will be 30% of $540,000.

= 30/100 x $540,000

=0.3 x 540,000

=$162,000

Tax amount = $162,000.

Net income =  Income before tax - tax amount

=$540,000 - $162,000

=$378,000

8 0
3 years ago
Cameron has a small graphics design business that specializes in customizing social websites. The business is growing; however,
Veronika [31]

Answer: Introducing mass production methods into his business.

Explanation:

As the given information suggests that Cameron has a small graphic design business. He is responsible for customizing social websites which is a creative and time consuming task. This also require a lot of thinking and innovation skills. At the verge of expanding his business he should avoid mass production as this will likely to reduce his quality of production and limit his creativity.

4 0
3 years ago
Luciana, a nonshareholder, purchases a condominium for her employer for $85,000. The fair market value of the condominium is $12
krok68 [10]

Answer:

Luciana’s basis in the condominium is $120000.

Explanation:

The transfer or sale of property by the employer to the employee at less than the fair market value then it is considered as the compensation income or dividend income. However, it should be included in the income. The difference in cost and fair market value ($120000 - $85000 = $35000) is considered as the gross income which is taxable for the year.

5 0
3 years ago
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