Explain how consumer's income can affect the demand curve for normal goods?

When the economy is operating at point C, the Federal Reserve may decrease the discount rate to

brilliants [131]

Answer:

D ; increase growth

Explanation:

The discount rate is one of the tools that the Federal Reserve uses to direct monetary policy. Banks are subject to minimum reserves requirements. If a bank falls below this minimum, it can borrow from the banks with a surplus, or borrow from the federal reserve. If it borrows from the Fed, the interest rate that applies is the discount rate. The discount rate is always higher than the fed fund rate; hence, banks use it as a last resort.

The discount rate and the fed rate have similar effects on the economy. The Fed uses the discount rate to regulate the money supply in the country. When the growth in slow, the fed will reduce the discount rate. A low discount rate means the cost of borrowing money goes down. The impact is that individuals and businesses will afford to borrow money for consumption and investment.

Increased levels of investments and consumption will mean a higher GDP, which is growth.

7 0

4 years ago

Resources are used efficiently in the sunhat market because when _______. A. production is capital intensive, producer surp

Bad White [126]

Answer:

The correct answer is B

Explanation:

Resources are used efficiently in the sunhat market because when marginal social benefit equals marginal social cost, total surplus is maximized. Thus, From the given four options only the option B is the correct option.

MSC = Marginal Social cost

MSB = Marginal Social Benefit

It is becuase in the competitive market, the quantity that is supplied in the market in same to the quantity which is demanded.

6 0

3 years ago

Inflation is when _________ money is paid for the same amount of goods and services than in a previous time period. the same amo

Kisachek [45]

Answer:

More

Explanation:

Use google

6 0

3 years ago

Exercise 14-13 Coronado, Inc. had outstanding $5,460,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years.

cupoosta [38]

Answer: Please see expalantion coumn for answer

Explanation:

1) To record issuance of bonds

Date Account Title Debit Credit

July 1 Cash $9,457,500

Discount on bond payable $292,500

Bond payable $9,750,000

Calculation:

Cash =$9,750,000 x 97% = $9,457, 500

Discount = $9, 750,000 - $9,457,500= $292,500

2)To record retirement of 11% bonds

Date Account Title Debit Credit

August 1st Bond payable $5,460,000

Loss on Redemption of bonds $218,400

Cash $5,569,200

Discount on Bonds payable $109,200

Calculation:

Cash =$5,460,000 x 102% = $5,569,200

Loss on Redemption of bonds = Cash + Discount on bonds payable - Bonds payable = $5,569,200 + $109,200) - $5,460,000= $218,400

7 0

4 years ago

Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead ra

pantera1 [17]

Adirondack Marketing Inc.'s Factory Overhead per unit of Product A is d. $222.09 per unit.

Data and Calculations:

Overhead Total Direct Labor Hours DLH per Product

A B

Painting Dept. $251,700 10,200 9 5

Finishing Dept. 61,700 11,900 5 6

Totals $313,400 22,100 14 11

The overhead rate for a unit of Product A in the Painting Department = Total overhead in the Painting Department divided by Direct Labor Hours, multiplied by direct labor hours per unit of Product A.

= $222.09 ($251,700/10,200 x 9)

Thus, for a unit of Product A, the overhead rate in the Painting Department is $222.09.

Learn more about overhead allocation at brainly.com/question/14095583

5 0

3 years ago