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chubhunter [2.5K]
3 years ago
15

Identifying time lags Advocates of active policy face several obstacles when implementing discretionary fiscal or monetary polic

y, such as identifying the economy's potential output level, the natural rate of unemployment, and the effects of a passive approach. Policymakers must also cope with a multitude of time lags that complicate the implementation of active policy. Identify the type of time lag illustrated in the following scenario:
Policymakers believe that the economy is experiencing a recession, and they have agreed on the need for expansionary monetary policy. However, some economists suggest dropping the federal funds rate by 0.25%, while others think it needs to be decreased by 0.75%.

a. Effectiveness lag
b. Recognition lag
c. Implementation lag
d. Decision-making lag
Business
1 answer:
e-lub [12.9K]3 years ago
4 0

Answer: d. Decision-making lag

Explanation:

When policy makers have identified that there is a problem that needs fixing but cannot seem to agree on the way forward, this is known as a <em>Decision - Making Lag or simply the Decision Lag.</em> It is one of the 3 specific inside Policy Lags and can be devastating due to the uncertainty of time it might take.

For instance, the economists suggesting dropping the federal funds rate by 0.25% might have the backing of one half of the Fed and the other Economists, the other half. Arguments could therefore go on for weeks before a decision is made.

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Is a worker's human capital and his or her resulting productivity the ONLY determinants of that person's wage or salary?
stich3 [128]
The correct answer is

<span>No, like all resources, supply and demand also affect how much a worker is paid.


For example, a worker doing the same computer job might be paid more in New York than in other places: this has to do with the fact that the demand and supply (in form of workers ready to work in NY for a certain wage) are different in those two places</span>
3 0
3 years ago
The presence of media hubs, coalitions focusing on specific environmental challenges, and headquarters for multinational corpora
I am Lyosha [343]

Answer: B

Explanation: Are linked globally in ways that transcend national political boundaries

4 0
3 years ago
Read 2 more answers
Company A is considering a merger with Company B. A has 43,000 shares outstanding at a market price of $32 a share. B has 12,800
mrs_skeptik [129]

Answer: $1381400

Explanation:

From the question, we are informed that Company A is considering a merger with Company B and that A has 43,000 shares outstanding at a market price of $32 a share while B has 12,800 shares outstanding priced at $44 a share and the merger is expected to create $5,400 of synergy.

The total value of the merged firm will be:

= (43,000 × $32) + (12,800 × $44) + $5,400 - $563,200

= $1,376,000 + $563,200 + $5,400 - $563,200

= $1,944,600 - $563,200

= $1,381,400

6 0
3 years ago
________ databases are the most commonly used electronic databases.
irina [24]

The answer to this question is a relational database. A Relational database is a computer database that is stored in which information and data that is stored have a relation with each other. Relational database is also a set of tables, records, and columns. The software that is used in a relational database is called a relational database management system or RDBMS. 

5 0
3 years ago
An investment is advertised as returning 5.5% every 6 months (semiannually), compounded semiannually. If $50,000 is invested, th
Alecsey [184]

Answer:

(A) 11.3% (B) $430,000

Explanation:

There seems to be an error in the compounding equation written as A(t) = 50,000(1.055)2t.

Compounding the semi annual return, the equation should be

A(t) = 50,000 * 1.055^{2t}

where t is the number of years.

The equation is similar to the first expected that 1.055 is raised to the power of (2t) and not multiplied by it.

(A) Compounding at 5.5% semi-annually, the equivalent annual growth rate is computed as follows.

= 1.055^{2} -1

= 1.113025 - 1

= 0.113025 = 11.3025%

= 11.3% (to the nearest tenth of a percent).

(B) In 20 years, the investment will be worth

A(t) = 50,000 * 1.055^{2t} (where t=20)

= A(t) = 50,000 * 1.055^{2*20}

= A(t) = 50,000 * 1.055^{40}

= 50,000 * 8.5133

= $425,665

= $430,000 (to the nearest ten thousand dollars)

5 0
3 years ago
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