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Triss [41]
3 years ago
13

If the Fed has an interest-rate target, meaning they want to control the interest rate at a specific rate such as 4%, why will a

n increase in the demand for reserves lead to a rise in the money supply?
Business
1 answer:
krek1111 [17]3 years ago
6 0

Answer:

A rise in demand for reserves will shift the demand for reserves curve to the right which will cause a rise in interest rates. The Fed will then have to act to reduce this interest rate because they would prefer that it remained at the specific rate as mentioned.

To do this they will embark on Open Market Operations aimed at increasing money supply as this will reduce interest rates by increasing the supply of reserves because it will shift the supply curve for reserves to the right. The new equilibrium will be a lower interest rate.

The relevant Open Market Operation will be the buying of bonds from the public.

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Baldwin Company had 40,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000 sh
Sindrei [870]

Answer:

$56,667

Explanation:

Diluted EPS is a measure used to assess the quality of a company's earnings per share (EPS). Diluted EPS takes into calculation all convertible securities such as convertible bonds or convertible preferred stock, which are changed into equity or common stock.

The stock options have a value of (10,000 × $10)/$12 = $8,333 on conversion.

To calculate the Diluted Earnings per share,

40,000 + (20,000 × 9/12) + (10,000 - 8,333) = $56,667.

7 0
4 years ago
Kate's 24-Hour Breakfast Diner menu offers one item, a $5.00 breakfast special. Kate's costs for servers, cooks, electricity, fo
mamaluj [8]

Answer:

Kate will continue to operate in the short-run but plan on she will  exit the business in the long-term

Explanation:

Kate's decision should be guided by her business's performance in terms of profitability. Kate is selling her meal at $5, but her total cost of serving the meal is $5.20.  It means the business is operating at a loss.

Kate must start plantation on how she will leave that business. She may continue operating but only for a short while. Soon, she will find it hard to stay open because the business is loss-making. Kate will, therefore, continue operations in the short run. In the long term. Kate must plan on exiting the business.

4 0
3 years ago
John Hernandez is 24 years old and has saved enough money to fund an adequate emergency fund. In addition, he has saved $5,600 t
Romashka-Z-Leto [24]

It would be GROWTH, so the most important factor for him would be growth.

3 0
3 years ago
Moore's law states that every 18 months, the computing speed of a microchip doubles.
horrorfan [7]

Answer: The price level falls and output rises.

Explanation:

According to Moore's law, it is stated that the computing speed of a microchip doubles every 18 months. According to Moore, this will increase thespeed and capability of computers and also bring about lesser pay for the computers.

The effect of this on the economy is that it will lead to a fall in price level and increase in output as there will be faster and cheaper production. This can be shown in the diagram attached.

5 0
3 years ago
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produ
bija089 [108]

Answer:

The answers is: B) 5 apples; 2 apples

Explanation:

The opportunity cost is how much of one product you are giving up when you decide to take a different product.

In this case, for every pair of shoes an American worker decides to make, he is not growing 5 apples (100 apples / 20 pairs of shoes).

And for every pair of shoes a Canadian worker decides to make, he is not growing 2 apples (20 apples / 10 pairs of shoes).

4 0
3 years ago
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