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Alla [95]
3 years ago
14

2.FED (Federal Reserve Bank). buys a $10,000 bond from bank. What is the potential impact on MS (Money Supply)

Business
1 answer:
oksano4ka [1.4K]3 years ago
6 0

Answer: Money Supply Increases

Explanation:

If the FED buys a $10,000 bond from a bank, it is increasing the money supply in the economy because the cash that it pays for the bond will go into the economy.

Buying bonds and securities from banks is one way the FED can embark on expansionary monetary supply policies that aim to inject money into the economy.

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an oligopolist has a marginal revenue curve that jumps down at 500 units of output. what kind of oligopoly does the firm most li
STALIN [3.7K]

The marginal revenue curve of an oligopolist begins to decline after 500 units of output. Which type of oligopoly does Sweezy's company most likely operate under?

A market system known as an oligopoly occurs when a small number of important sellers or manufacturers dominate a market or an industry (from the Greek words oligos, "few," and v, polein, "to sell"). The result of corporate cooperation to boost profits is typically oligopoly. Numerous industries have been identified as being oligopolistic, including commercial aviation, power providers, telecommunications companies, rail freight markets, food processing, funeral services, sugar refining, beer production, pulp and paper manufacture, and auto manufacturing. Because of the decreased competition, consumer prices would increase and labour earnings will decrease.

Learn More About oligopoly:

brainly.com/question/14285126

#SPJ4

6 0
1 year ago
Help with economics?
umka2103 [35]
Changes in commodity prices
3 0
2 years ago
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
Arturiano [62]

Answer: $8.81

Explanation:

To solve this, add the present values of the dividends from years 3, 4 and 5 and then add the present value of the terminal value of the stock at year 5.

Year 3 dividend = $0.50

Year 4 dividend = 0.50 * (1 + 49%) = $0.745

Year 5 dividend = 0.745 * 1.49 = $1.11005

= Dividend in year 3 / (1 + required rate of return)³ + Dividend in year 4 / (1 + required rate of return)⁴ + Dividend in year 5 / (1 + required rate of return)⁵ +   (Dividend in year 5 * (1 + growth rate) / ( required rate of return - growth rate ) ) / (1 + required rate of return)⁵

= 0.5 / 1.16³ + 0.745/1.16⁴ + 1.11005/1.16⁵ + ( 1.11005 / (16% - 9%)) / 1.16⁵

= $8.81

5 0
2 years ago
intelligent industries recently purchased a $50,000, 10% 12-month bond. from intelligent’s point of view, this bond would be con
Paul [167]

from Intelligent’s point of view, this bond would be considered a current asset, because it represents a resource that can easily be converted to cash within one year.

A bond is a debt instrument. A bondholder is entitled to regular predetermined interest rate payments and at the end of the bond's tenure, the bondholder would receive the amount invested.

Current assets are assets that are expected to be sold, used, or exhausted through standard business operations with one year.

Examples of current asset are:

  • cash
  • cash equivalents
  • accounts receivable
  • stock inventory
  • marketable securities
  • pre-paid liabilities

To learn more, please check: brainly.com/question/14287268

5 0
2 years ago
Problem solving is often considered a
Troyanec [42]
Solution , explanatory , inquiring
7 0
3 years ago
Read 2 more answers
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