1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Evgesh-ka [11]
3 years ago
14

If the Federal Reserve held the money supply constant in response, the effect on aggregate demand from the increase in governmen

t spending would be:___.
Business
1 answer:
nordsb [41]3 years ago
5 0

Answer: Smaller

Explanation:

<em>If the Federal Reserve held the money supply constant in response, the effect on aggregate demand from the increase in government spending would be </em><em><u>smaller</u></em><em> than if the Fed were committed to maintaining a fixed interest rate. </em>

A rise in Aggregate Demand would lead to more people demanding money to enable them to spend. If the Fed keeps the money supply constant therefore, the increase aggregate demand will be less than if the Fed was committed to maintaining a fixed interest rate.

This is because if the Fed wanted to maintain a fixed rate they would have increased money supply to match money demand which would have led to Aggregate demand increasing more than if they hold the money supply constant.

You might be interested in
If the Federal Reserve contracts the money supply, then interest rates will _____, and GDP will _____.
finlep [7]

Answer:

Interest rates will rise and GDP will fall

Explanation:

If the money supply falls, that makes money more valuable because there's less of it to go around. Interest rates will reflect this change in the value of money, with interest rates increasing because with money more valuable, there will be a greater opportunity cost to lending money. GDP, in turn, will fall, because money is one half of all economic transactions and so a decrease in the money supply necessarily decreases the number of economic transactions made.

4 0
3 years ago
The Magnolia Swimming Pool Company wants to determine the average number of years it takes before a major repair is required on
Karo-lina-s [1.5K]

Answer:

The correct answer is Statistic.

Explanation:

Statistical data are the values obtained when carrying out a statistical study. It is the product of the observation of that phenomenon that is intended to analyze.

To be useful, statistical data must be organized and considered from a context. Taking the previous example, these data will be valuable if it is known to which tennis player they belong and in what period or period they were obtained by the athlete.

It is important to keep in mind that the processing of statistical data is what generates information. The data itself, considered as isolated, lacks interest.

Obtaining and processing statistical data are very important tasks for decision making in various fields. A government, for example, needs reliable statistical data to decide its economic policy.

6 0
4 years ago
What is 40 divided by 31
tatuchka [14]

The answer it's 1.2 :)



5 0
3 years ago
Read 2 more answers
______ facilitate the transfer of financial assets among individuals, institutions, business, and governments
lisov135 [29]

Answer:

Financial markets

...hope this helpss weeepeee :)

5 0
3 years ago
Read 2 more answers
Evidence supporting semistrong-form market efficiency suggests that investors should _________________________.A. rely on techni
Bond [772]

Answer:

Letter C is correct

Explanation:

Passive trading strategy is correct. In the case of an investor-friendly market, the valuation of an investment fund will be ascertained and thus the value of capital gains will be higher. Therefore when investing in an EFTD which is an investment fund that uses benchmarks where the gains are equal to or greater than the index. The investor has the possibility for a specialist to identify and track the best time in the market to make purchases and sales.

8 0
3 years ago
Other questions:
  • W.C. Cycling had $55,000 in cash at the year-end 2011 and a $25,000 en cash at year end 2012. The firm invested in property, pla
    10·1 answer
  • How are credit unions similar to banks
    11·1 answer
  • Starbucks has been in business for over 40 years and for most of that period has been quite successful. They have a portfolio of
    12·1 answer
  • Refer to Exhibit 9.7, which shows the cost and revenue curves for a monopolist. If the monopolist does not price discriminate am
    10·1 answer
  • asmine Smith owns a condo worth $250,000, a car valued at $15,000, and miscellaneous assets worth $7,500. She owes $190,000 on t
    13·1 answer
  • A city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market v
    13·2 answers
  • Suppose you are the owner of a picture frame store and you wish to calculate how many frames you must sell to cover your fixed a
    12·1 answer
  • ​"The application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify
    13·1 answer
  • Using groups to solve problems generally requires consensus, meaning that all members must reach an agreement to support the fin
    10·1 answer
  • Franchise<br> Is what type of organization
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!