Answer:
A. AD curve shifts rightward, increasing real GDP and raising the price level.
Explanation:
Federal funds rate can be defined as the interest rates bank charge other banks on loans of reserves and it is a monetary policy instrument.
If the Fed lowers the federal funds rate, eventually the Aggregate Demand (AD) curve shifts rightward, increasing real Gross Domestic Products (GDP) and raising the price level.
However, raising the federal funds rate, eventually causes the
Aggregate Demand (AD) curve to shift leftward and real Gross Domestic Products (GDP) decreases.
Answer:
I have outlook, but it's for school.
Explanation:
A savings account you can redraw from, while a certificate of deposite has to be left alone for a certain while, and it ussually gains more interest.
In the new long-run equilibrium, there would be an increase in the number of suppliers of t-shirts.
<h3>What would happen when the demand for plan white t-shirts increase?</h3>
A perfect competition is when there are many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply.
When demand for t-shirts increase, there would be an excess of demand over supply. This would lead to a shortage. This would increase the price of t-shirts. In the long run, more suppliers would enter into the industry and this would increase supply of t-shirts. As a result, equilibrium would be restored.
To learn more about perfect competition, please check: brainly.com/question/17110476
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Answer:
- Cheaper labor.
- Cheaper auto parts.
Explanation:
China has cheaper labor rates than the United States in comparative industries including in the motor vehicle producing industry. Ford may want to take advantage of this to make cars at a smaller cost in China and therefore make more profit in sales.
Car parts are also easier and cheaper to acquire in China. Steel for instance, is a very valuable commodity in motor vehicle manufacturing and China happens to be the largest producer in the world. Having access to cheaper materials would increase Ford's profitability as well.
