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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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SCREEN SHOT / MAX POINTS / WILL MARK BRAINLIEST Match the term to the definition. mixed economy The method a country uses to ans
Stolb23 [73]

Answer:

Mixed economy - combined elements of the command and market economies

Market economy- The resources are owned and controlled by the people of the country

Economic system - The method a country uses to answer the three economic questions market economy

Traditional economy- Goods and services are produced the way it has always been done

Capitalism- The private ownership of economic resources by individuals, rather than by the government

Command economy- The resources are owned and controlled by the government command economy

3 0
3 years ago
The following events took place at a manufacturing company for the current year:(1) Purchased $95,000 in direct materials.(2) In
Rom4ik [11]

Answer:

D $88410

Explanation:

Work in progress includes all the raw materials, direct labour and conversion costs incurred so far excluding cost of goods sold .

WIP= Intial WIP +Manufacturing costs incurred- Cost of goods sold.

The WIP inventory at the begining of the period is given as nil.

WIP during the period = (95000*80%)+56000+13600+107000

=252600(but it was given that 65% of the Process was completedi.e., finished goodswhich are not the part of the WIP inventory ; hence the remaining 35% is the Work in process inventory)

=$ 88410.

Further the remaining raw material 20% = 95000*20% shall not comprise a part of the WIP as it has not been brought into process itself , it shall lie in raw materials inventory itself.It shall be counted into the WIP once it is brought into the manufacturing assembly line.

3 0
3 years ago
Read 2 more answers
A managed portfolio has a standard deviation equal to 22% and a beta of .9 when the market portfolio's standard deviation is 26%
Bingel [31]

Answer:

A. 118%

Explanation:

22w= 26,

Hence:

The weight in the managed portfolio is

26/22

= 118%

Therefore the adjusted portfolio P* needed to calculate the M2 measure will have 118% invested in the managed portfolio and the rest in T-bills.

7 0
3 years ago
What should an adjustment letter focus on?a. Explaining the resolution to the problem b. Preventing a recurrence of the problem
ivanzaharov [21]

Answer:

The correct answers are letters "A", "B", and "C":  Explaining the resolution to the problem; Preventing a recurrence of the problem; Communicating compliance.

Explanation:

Adjustment letters are communications with legal nature from companies to customers who filed a claim. The main purpose of the letter is to politely <em>inform the client that the claim was received, what steps were taken to analyze the situation, what is the final resolution after the study </em>and <em>what will be done as a result</em>. The ultimate goal of the adjustment letter is to <em>keep a good relationship with the customer so they can continue doing business</em>.

8 0
3 years ago
Lee Financial Services pays employees monthly. Payroll information is listed below for January 2018, the first month of Lee's fi
solniwko [45]

Answer and Explanation:

1. The computation is shown below:

As we know that employee taxes involved the social security tax, medicare tax and the income tax

Social security tax

= Gross pay × 6.2%

= $470,000 × 6.2%

= $29,140

Medicare tax

= Gross pay × 1.45%

= $470,000 × 1.45%

= $6,815

And,

Income tax withheld = $94,000

Now payroll taxes involved social security tax, Medicare tax, Federal unemployment tax, and state unemployment tax.

Social security tax

= Gross pay × 6.2%

= $470,000 × 6.2%

= $29,140

Medicare tax

= Gross pay × 1.45%

= $470,000 × 1.45%

= $6,815

Federal unemployment tax is

= Gross pay × 0.6%

= $470,000 × 0.6%

= $2,820

State unemployment tax

= Gross pay × 5.40%

= $470,000 × 5.40%

= $25,380

2. Now the journal entries are

On January, 2018

Salaries wages expense  $470,000

       To Withholding income tax payable  $94,000

       To Social security tax payable  $29,140

       To Medicare tax payable $6,815

       to Salaries and wages payable $340,045

(being salaries and wages expense is recorded)

On Jan 2018

Payroll tax expense  $64,155

      To Social security tax payable $29,140

      To Medicare tax payable $6,815

      To Federal unemployment tax payable $2,820

      To State unemployment tax payable $25,380

(being tax liabilities is recorded)  

 

 

8 0
2 years ago
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