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melomori [17]
3 years ago
8

Which of the following is true of a central bank that employs inflation targeting? A target rate of annual inflation is maintain

ed by increasing or decreasing tax revenues. A target rate of employment is maintained by expanding or contracting the money supply. A target rate of annual inflation is maintained by hiring or firing federal employees. A target rate of annual inflation is maintained by expanding or contracting the money supply.
Business
1 answer:
olganol [36]3 years ago
4 0

Answer:

A target rate of annual inflation is maintained by expanding or contracting the money supply.

Explanation:

Inflation targeting may be defined as the monetary policy of the central bank which follows a very explicit goal for the medium term and it announces the inflation target to the general public. According to the economist, the economy would perform better if there is inflation and the price rises. For maintaining the economic growth of a country, inflation or the rise in prices is necessary.

It is done by the Central bank by managing the monetary supply in the market and also maintaining the interest rates in the market. The inflation targeting is considered as the antidote for the stop go money policy of the past.

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Suppose two cities are considering tearing down their stadiums to build new ones. In one city, the old stadium cost $5 million t
timofeeve [1]

Answer:

These are the options for the question:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

B. They should be more willing to tear down the $50 million stadium, because it cost more to build.

C. The cost to build the old stadium shouldn’t be considered.

And this is the correct answer:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

Explanation:

City A will likely be more willing to tear down its old stadium because it costed $5 million to build. City B, on the other hand, will have to think twice because a stadium that costed $50 billion to build could have more value than it seems, or the City could simply not have enough money to build a better new stadium (something that would probably cost more than $50 billion to do).

4 0
3 years ago
Read 2 more answers
Which of the following statements best reflects a price-taking firm? a The firm has an incentive to charge less than the market
MatroZZZ [7]

Answer:

b

Explanation:

A price taking firm is a firm that must sell at the price determined by the forces of demand and supply. This is typical of firms that in industries that sell identical products.

If the firm charges a price higher than equilibrium price, customers would go to other suppliers and the firm would sell known of its product.

There would be no incentive for a firm to sell below equilibrium price because it would be earning losses.

An example of an industry characterised by price taking firms are perfectly competitive industries.

For example, a farmer selling oranges is an example of a price taking firm

5 0
3 years ago
Yakov orders 40 cases of mescal from a Mexican distributor at a price of $90 per case. 2. A U.S. company sells 200 spark plugs t
vlabodo [156]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0
3 years ago
Jacques has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Kyoko, w
77julia77 [94]

Answer:

Explanation:

Rightly ignored a sunk cost since he cannot recover the money back and it really does not have any effect on the decision in the future

3 0
3 years ago
Last year Aft charged $2,946,667 Depreciation on the Income Statement of Andrews. If early this year Aft purchased a new depreci
Kisachek [45]

Answer:

Decrease in Bank balance and increase in fixed assets

Explanation:

When a new depreciable asset is purchased, the money leaves the bank account hence reducing the bank balance in the statement of financial position, and on the other hand the 'Fixed asset' balance will rise by the same amount; recognizing the addition to the assets of the company. In this scenario the balance sheet totals remain unchanged as the same amount has been subtracted from 'bank' and added to 'fixed assets' all within the asset side.

However, if the asset is debt financed, it will increase the long term liability figure because 'bank loan' will be recognized. Hence the totals of the balance sheet will rise by the amount of the loan on the 'Capital and liabilities' side and the amount of the asset on the 'Asset' side.

Another impact is that the amount of depreciation charged to the Income Statement will be higher than $2,946,667 which was charged in the previous year because the new asset's depreciation will have to be added.

3 0
3 years ago
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