Answer:
Expansionary monetary policy
Explanation:
Expansionary monetary policies refer to the Federal Reserve's actions to increase the money supply in the economy to stimulate economic growth. Expansionary monetary policies seek to add more money to households and businesses to encourage investments and consumption. These policies are used in times of economic downturns or recessions.
An increase in the money supply results in more consumer and investment spending, which increases the aggregate demand. When the aggregate demand increases, factories increase their production, hire more workers, which translates to an increase in GDP and a reduction in the unemployment rate. Examples of expansionary monetary policies include decreasing the discount rate, open market purchases reducing the reserve requirements.
Answer:
Projects A,B,C,D and E should be accepted
Explanation:
Based on the fact that each of the itemized projects has the same of level of risk as the company's existing assets, we suggest that the firm undertake those projects that gives a return rate which is above the current weighted average cost of capital of 10.5%
In essence,projects A,B,C,D and E should be accepted as they 12%,11.5%,11.2%,11% and 10.7% returns on investment respectively.
Projects F& G would be rejected on the premise that their rates of return are lower than what is currently obtainable in Midwest Water Works.
Answer:
The answer is C.
Explanation:
Necessity goods are the goods or services that a consumer will continue buying whether income falls or the price rises. This type of goods are considered essential. The are not sensitive to price. To Jane, Diet coke is a necessity because she takes it everyday.
While luxury goods are goods that are really not essential. They are owned or bought for the sake of showing wealth or affluence. To Jane, gourmet cheese is a luxury good.
C) social security will run out by 2042.
