Answer:
Less, fall, toward
Explanation:
Refer to Exhibit 3-17. At a price of $20, the quantity demanded of good X is less than the quantity supplied of good X, and economists would use this information to predict that the price of good X would soon fall. This would push the price toward the equilibrium price.
Answer: The following are reasons for increase in ethical violations among business leaders in the 21 century:
1. The 24/7 news cycle place a more scrutiny on unethical behaviour.
2. Globalization allows business to operate in region where ethical risk are greater.
3. Digital communication are more susceptible to hackers and whistle blowers.
Explanation:
Answer:
The three basic monetary policy tools used by the U.S are; The discount rate, open market operations and reserve requirement.
Explanation:
The discount rate – This is the rate charged by Reserve Banks when lending short term loans to Commercial Banks. If there is a wish to expand the economy, the discount rate is lowered. This, in a domino effect, causes other interest rates such as consumer lending by commercial banks to lower. This encourages lending and spending by consumers and businesses through an increase in the money supply. When there is a wish to implement a contractionary policy, the discount rate is lowered thus causing other lending and borrowing rates to increase. This discourages borrowing and lending, eventually reducing the money supply in the economy.
Open market operations – This policy is achieved through the buying and selling of U.S Government securities. To achieve expansionary effects on the economy, the Fed buys government securities from members of the public, increasing the economy’s money supply. If, on the other hand, contractionary effects are desired, the Fed sells government securities to members of the public, and thus reducing the money supply.
Reserve requirements – These are portions of deposits that banks must hold in cash, either with the Reserve Bank or in their vaults. When there is a desire to practice expansionary policies, the Reserve bank lowers the requirement level thus increasing the amount of money that is available for lending in the commercial banks. This increases the money supply. If the Fed wishes to contract the economy, then the reserve requirement level is decreased thus reducing the money available for lending and in a ripple effect, the general level of money supply reduces.
Answer:
It helps them to get their money without attending to their work places
