Assume that each period's potential production increases by 4% as productivity rises. Each period, the money supply should be reduced by 4%.
<h3>How can monetary policy manage inflation?</h3>
One frequent strategy for managing inflation is to implement a contractionary monetary policy. By lowering bond prices and raising interest rates, a contractionary policy seeks to reduce the amount of money available in an economy. As a result, prices drop, inflation slows, and consumption declines.
<h3>Is the greatest approach to lower inflation through monetary policy?</h3>
Increasing interest rates in the economy and tightening monetary policy will help to lower inflation if it is too high, but they will also likely slow down economic development and increase unemployment.
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Answer:
online marketing
Explanation:
Through there u can communicate face to face
Answer:
I would choose to invest in C-T bank since it offers $7.3675 more compared to Bank Wan
Explanation:
The two options can be expressed as shown;
Option 1: Bank Wan
A=P(1+r/n)^nt
where;
A=Total amount after a given time
P=Initial deposit
r-Annual interest rate
n=number of times the interest is compounded annually
t=number of years of the investment
In our case;
P=$1,500
r=2.5%=2.5/100=0.025
n=365 days
t=1 year
Replacing;
A=1,500(1+0.025/365)^(365×1)
A=1,500(1.02530
A=1,537.97
Total amount after a year=$1,537.97 for Bank Wan
Option 2: C-T Bank
P=$1,500
r=3%=3/100=0.03
n=2
t=1
Replacing;
A=1,500(1+0.03/2)^(2×1)
A=1,500(1.015)^2
A=1,545.3375
Total amount after a year=$1,545.3375 for C-T Bank
Total amount received to be received from C-T Bank-Total amount to be received from Bank Wan
=(1,545.3375-1,537.97)=$7.3675
I would choose to invest in C-T bank since it offers $7.3675 more compared to Bank Wan
Answer:
False
Explanation:
The reason is that accrual concept says that the income must only be realized when the revenue are earned which means that the company has delivered her consideration (The part of the service that is delivered to the customer which has monetary value). So the income earned is equal to the monetary value of the two suits they had designed till June 30. So the double entry would be:
Dr Revenue accrued 49000/10suits *2 suits = $9800
Cr Trade Receivables $9800
So saying that the service revenue of $12,250 must be accrued is totally false statement.
Answer:
5.5%
Explanation:
Nominal GDP = 3.5%
Economic growth rate = -2.6 %
population growth = 0.6%
To calculate the annual inflation rate :
Economic growth rate = Nominal GDP - %change in price - population growth
-2.6 = 3.5 - %change in price - 0.6
Therefore the %change in price ( inflation rate ):
inflation rate = 3.5 + 2.6 - 0.6
= 3.5 + 2
= 5.5%
The inflation rate of a country measures the relative increase increase in the price of commodities without a relative increase in purchasing power