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scoray [572]
3 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]3 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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Brittany sold her stock (the basis of $60,000) to her brother, Ridge, for $35,000, the fair market value. Her brother subsequent
igor_vitrenko [27]

Answer:

Brittany sold her stock (the basis of $60,000) to her brother, Ridge, for $35,000, the fair market value. Her brother subsequently sells the stock to the third party for $34,000.

Ridge’s recognized gain or (loss) is ($ 1,000).

Explanation:

The formula for calculating recognized Gain/[loss] is expressed below:

Recognized Gain/[loss] = Sales Price - Fair Market Value at the time of purchase from Brittany

Recognized Gain/[loss] = $ 34,000 - $ 35,000 = [$ 1,000]

Based on the calculation above, Ridge’s recognized gain or (loss) is ($ 1,000).

5 0
4 years ago
What is not a guideline for evaluating your working main points?
dimaraw [331]
<span>Constructing each point in many different ways is usually not a good way to make one's main points. This will only confuse the reader and give them the belief that the writer doesn't really have that much evidence to back up their main idea. Using a number of different points, while only stating them in one way makes it easier for the reader to see all the different pieces of evidence and how they fit together.</span>
4 0
3 years ago
Identify the accounting concept that was violated in each of the following situations.
NISA [10]

The typical accounting principles/assumption includes Accrual principle, Conservatism principle., Consistency principle, Cost principle, Economic entity principle, Full disclosure principle, Going concern principle, , Matching principle etc.

<h3>What are the correct concept for each of the following activities using the drop-down list?</h3>
  • Pastel Paint Company purchased land two years ago at a price of $250,000. Because the value of the assumptions and land has appreciated to $400,000, the company has valued the land at $400,000 in its most recent balance sheet. - The historical cost.

  • Atwell Corporation has not prepared financial statements for external users for over three years. - The periodicity assumption.

  • The Klingon Company sells farm machinery. Revenue from a large order of machinery from a new buyer was recorded the day the order was received. - The realization principle.

  • Don Smith is the sole owner of a company called Hardware City. The company recently paid a $150 utility bill for Smith's personal residence and recorded a $150 expense. - Economic entity assumption.

Read more about accounting principles

brainly.com/question/23008273

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5 0
1 year ago
Large firms often find new markets attractive, but might not have products ready for delivery. What strategy do such firms use t
laiz [17]

Answer:

The correct answer is Preannounce forthcoming efforts

Explanation:

A company that wants to enter a new market usually must have its entire operation ready to be able to carry it out in the short term, and if it does not have it, it must inform by means of a strategy that allows generating a marked market interest in knowing the new product to be offered. This will give them time to put the internal aspects in order and be able to produce within a set time.

8 0
4 years ago
Using the capital asset pricing model (CAPM), Sun State determined that the required rate of return for a capital budgeting proj
ANTONII [103]

Answer:

2.2

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

18% = 7% + Beta × 5%

18% - 7% = Beta × 5%

11% = Beta × 5%

So, the beta would be

= 2.2

The (Market rate of return - Risk-free rate of return)  is also known as market risk premium and the same has applied.

5 0
3 years ago
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