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3 years ago

What are the three main transmission mechanisms by which the yield curve affects the economy

1 answer:

4 0

The three main transmission mechanisms through which the economy is been affected as a result of yeild curve are:

Corporate impact

global impact

consumer impact

The yield curve can be regarded as graph which shows how the yield that comes from debt instruments vary with respect to their years remaining to maturity. This debt instrument could be bond.

The monetary transmission mechanism can be regarded as the process whereby asset prices as well as general economic conditions are been affected due to monetary policy decisions

The transmission that affect the economy are

Corporate impact
global impact
consumer impact

All these transmission all have effect on the aggregate demand as well as interest rates, and amounts of money in the economy

Therefore, transmission mechanisms have serious effect on the economy.

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Suppose France can produce four phones or three computers with one unit of labor, and Sweden can produce one phone or two comput

Fynjy0 [20]

Answer:

France should specialize in producing phones and import computers from Sweden

Explanation:

France can produce: 4 phones or 3 computers

The opportunity cost of producing 1 phone = (3 ÷ 4)

= 0.75 computers

The opportunity cost of producing 1 computer = (4 ÷ 3)

= 1.33 phones

Sweden can produce: 1 phone or 2 computers

The opportunity cost of producing 1 phone = (2 ÷ 1)

= 2 computers

The opportunity cost of producing 1 computer = (1 ÷ 2)

= 0.5 phones

According to the comparative advantage,

Sweden has a comparative advantage in producing computers because the opportunity cost of producing computers is lower for Sweden than for France.

France has a comparative advantage in producing phones because the opportunity cost of producing phones is lower for France than for Sweden and import computers from Sweden because Sweden has a comparative advantage in producing computers.

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3 years ago

When an accountant makes an adjusting entry for accrued expenses, which statement best reflects what the accounts look like befo

Sholpan [36]

Bank reconciliation statement

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3 years ago

What is a major drawback to outsourcing, and what solution could company management institute? courcehero

faust18 [17]

Answer with Explanation:

Some of the major drawback of outsourcing and how these issues must be tackled is listed as under:

Loss of control. When the company outsources its one of operating department then the company looses the control that previously it was able to emphasize on the management. Usually the company department is outsourced to a professional firm that knows every single issue related to the task assigned. But sometimes issue arises when the the service company pretends that it is highly professional in dealing with the issues but they are not. Its almost rare in developed countries because of rule of law. In such cases the company has to avoid the contract and look for another firm to cooperate in this area.
Reputational Risk: The negligence of working of third party may result in reputational losses. This may also have financial impacts in the form of loss of loyalty and sales. This risk is inherent risk and the solution is that the company must not form a contract until they are well assure of the professionalism of the firm.
Confidentiality Risk: The competitive advantage can be due to a new IT system implemented that integrates the information and lower the cost of information for the company that helps it in making much better decisions and is the reason of competitive advantage. The loss of this confidential data might result in loss of ideas or mechanism working knowledge that competitor may use to overcome the competitive advantage. The solution to this can be awarding tender to the firm that is professional and agreeing them that they will not breach the confidentiality and if they do that then they will compensate the company.
Coordination Issue: It is one of the major issue that the Outsourcing vendors don't frequently coordinate with the company because they have to manage other company data as well. The company and the firm must agree upon issues that must be resolved on a priority and in a defined time period.

5 0

3 years ago

The end result of the _____ phase of the systems development life cycle (SDLC) model should give users and top management a clea

Svetllana [295]

Answer:C - Planning Stage

Explanation: The System Development Life Cycle is a model of which organisations use when developing a new system.

SDLC has 5 Phases or steps and they include:

- Planning

- Analysis

- Design

- Implementation

- Maintenance

Each stage of SDLC has its importance in the system development.

Planing: At this state, the problem is identified, options of solutions are given and analysed as well as the possible outcomes are considered.

Analysis: At this stage the various options given at the planning stage are analysed and validated

Design: At this stage, the analysed options are designed to give a logical evaluation of the model to be adopted

Implementation: At the state, the design is implemented and tested

Maintenance: At this state, the errors are corrected and validated.

7 0

3 years ago

Calculating the price elasticity of demand: A step-by-stepguideSuppose that during the past year, the price of a laptop computer

NARA [144]

Answer:

original quantity = 468,000

Average quantity = 382,000

new quantity = 296,000

a. -45.03%

original price - $2,950

new price = $3,110

Average price = 3030

3. -172,000

$160

b. 5.28%

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price

Average quantity = (468,000 + 296,000) / 2 = 382,000

Average price = ($2,950 + $3,110) / 2 = 3030

Change in quantity = 296,000 - 468,000 = -172,000

Change in price = $3110 - $2950 = $160

percentage change in quantity demanded = (-172,000 / 382,000) x 100 = -0.4503 = -45.03%

percentage change in price = 160 / 3030 x 100 = 5.28%

Elasticity of demand = -45.03% / 5.28% = -8.53 = 8.53

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4 years ago