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Vinvika [58]
3 years ago
11

Refer to the Article Summary. Implementing a negative interest rate policy, as is discussed in the article summary, would be des

igned to ________ the price level and ________ real GDP.
Business
1 answer:
zubka84 [21]3 years ago
6 0

Answer:

Refer to the Article Summary. Implementing a negative interest rate policy, as is discussed in the article summary, would be designed to ___lower_____ the price level and ___improve_____ real GDP.

Explanation:

The Fed will consider negative interest rates when it wants to increase borrowing and lending during economic recessions.  The effects of a negative interest rate are the reduction of the cost of borrowing economy-wide and the increase of economic activity.  The increased economic activity will be achieved through increased investments and increased consumption spending.  Thus, banks and consumers are encouraged to lend and borrow more money so that the economy can spend its way out of recession.

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Because of the substitution problem, the cpi tends to overstate the true change in the price of the typical basket of consumer g
butalik [34]

It is true that because of the substitution problem, the CPI tends to overstate the true change in the price of the typical basket of consumer goods.

<h3>What is CPI?</h3>
  • A consumer price index measures a market basket of goods and services that households have purchased at a weighted average price.
  • The measured CPI fluctuates to reflect changes in prices over time.
  • One of the most popular methods for determining inflation and deflation is the CPI.
  • An essential gauge of an economy's health is inflation. The CPI and other indexes are used by governments and central banks when making economic decisions.
  • The decision to raise or cut interest rates is crucial among these.
  • If the CPI increases, it indicates that the average rate of change in price over time has increased. The cost of living and income are eventually changed as a result of this.

Learn more about CPI here:

brainly.com/question/14453270

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7 0
1 year ago
Suppose you're pitching in a softball game and facing a good hitter. you remember that you struck her out with a fastball the la
WARRIOR [948]
<span>When you make this decision, you are primarily using your critical thinking. You are using information you were given in the past and applying it to future events.</span>
8 0
3 years ago
Which is of the following is NOT an example of a non profit organization?
OLga [1]
D) all of the answers
6 0
3 years ago
Presented below are three independent situations:
Blababa [14]

Answer:

Explanation:

a)

June 30, 2018

Dr Bonds Payable $250,000

Dr Loss on Redemption of bonds $25,500

    Cr Discount on Bonds Payable $20,500

    Cr Cash $255,000

Supporting calculations:

Discount on Bonds Payable = 250,000 -  229,500 = $20,500

Cash = $250,000*102/100 = $255,000

Loss on redemption of bonds = $255,000+$20,500-$250,000 = $25,500

b)

June 30, 2018

Dr Bonds Payable  $200,000  

Dr Discount on Bonds Payable $3,500

    Cr Gain on Bond Redemption  $9,500

    Cr  Cash                                             $194,000

Supporting calculations:

Discount on Bonds Payable = 200000-196500 = $3500

Cash = 200000*97% = $194,000

Gain on Bond Redemption = $200,000 + $3,500 - $194,000 = $9,500

c)

31 Dec

Dr Bonds Payable $30,000  

    Cr Common Stock  $6000

    Cr Paid in capital in excess of par-Common Stock $24000

Common Stock = 30000/1000*$5*40 shares = 6,000

4 0
3 years ago
When faced with barriers to change, leaders can create a good climate for advancing the aims of the organization and making prog
dexar [7]

Answer:

The correct answer is letter "A":  a learning organization; an ethical organization.

Explanation:

In order to tear down barriers within a company, managers must spark the creation of a learning organization to facilitate the continuous learning process of its employees which allows the organization to remain competitive. Besides, it is important not to set aside the ethical principles employees must adapt in their behavior within the work frame such as fairness, honor, and responsibility.

5 0
3 years ago
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