All categories

3 years ago

[04.04MC]

Business

2 answers:

klemol [59]3 years ago

8 0

Answer:

Lower discount rate

Explanation:

When commercial banks and other institutions borrow from the federal reserve, they repay at an interest rate known as the discount rate. The discount rate becomes the benchmark for inter-bank borrowing, and by extension, loans to customers. An increase or decline in the discount rate results in banks' interest rates moving in the same direction.

A recession is a business cycle where the growth rate is very low or negative. It is associated with low demand for goods and services, a high unemployment rate, and reduced production. The federal reserve intervenes by employing measures to stimulate production and growth.

In reducing the discount rate, banks' interest rates will reduce. The costs of borrowing money decreases. Firms and households can borrow money for consumption and investment. Reducing the discount rate increases the money supply in the economy. Demand for products and services goes up, which stimulates more production and growth in the GDP value.

Lynna [10]3 years ago

6 0

Answer:

Lower discount rate

You might be interested in

When inflation increases, the market value of outstanding fixed income securities will MOST likely:(A)Increase(B)Decrease(C)Rema

lubasha [3.4K]

Answer:

(B)Decrease

Explanation:

Interest rate is inversely related to the market value of fixed interest income securities like bonds, certificate of deposits, preferred stocks e.t.c.

The higher the inflation, the higher the interest rates all things being equal. An increase in interest rate will drive down the market value of fixed income securities because inflation reduces the real returns on fixed income securities.

7 0

3 years ago

What is liberalisation?

konstantin123 [22]

Answer:

Explanation:

Liberalisation is the process or means of the elimination of control of the state over economic activities. It provides a greater autonomy to the business enterprises in decision-making and eliminates government interference

6 0

3 years ago

A single taxpayer earns $500,000 of salary income and $20,000 of interest income in 2019. The taxpayer is a material participant

sukhopar [10]

Answer:

$220,000,

Explanation:

Given that:

$500,000 of salary income

$20,000 of interest income in 2019

So the total income of the taxpayer is: $500,000 + $20,000 = $520,000

As we know that, AGI (Adjusted gross income) is used to calculate how much income of a taxpayer is taxable. They are expenses incurred by the earner which are deducted before taxing.

In this situation, his share of the partnership's loss for the year is $300,000, so the taxpayer will report an AGI of:

$520,000 - $300,000

= $220,000

I hope it will find you well.

6 0

3 years ago

Read 2 more answers

On January 1, 2013, Warfield Co. purchased a $600,000 machine, with a five-year useful life and no salvage value. The machine wa

natulia [17]

Answer:

Explanation:

In the case when the depreciation method is changed so it should be treated propectively. The past year depreciation amount remains the same. So the starting year of change having no difference should be produced but the beginning to the closing year of change the deferred tax liability should be recorded the difference occured in the future that lies between the book and tax depreciation

So, it should be zero

4 0

4 years ago

What is the main challenge of career planning in changing times?

White raven [17]

The answer is option B. The main challenge of career planning in changing times is that you need to revise your plans often.

The world we live in is dynamic. New inventions, new technology, new methods of doing things always come up with time.

Because of this, when making a career plan, one must be fully aware that the process is not static. That is, changes would occur and as such, you have to revise your plans often so that it is in line with what is obtainable at the time.

<em>Read more on career planning here: brainly.com/question/6457203?referrer=searchResults</em>

5 0

3 years ago