Answer:
Why can't the Fed push the rate any lower than zero?
Real interest rates can be lower than zero, or negative (because inflation rate is higher than interest rate), but nominal interest rates are generally only limited to zero. But during this same time, the European Central Bank actually started paying negative interest rates on money deposits and many European private banks followed. That means that they charged people for having their money on the bank.
Why do you think that the Fed was so seemingly reluctant to push the rate all the way to the floor?
The reason why the Fed was not willing to push the interest rates to zero or even below zero was that by doing so, the US dollar would have depreciated or lost value. In Europe this was done to encourage people to spend their money and not save as much, but in the US that is not really a problem. Generally in the US the problem is that people spend too much and save too little, but on some European countries and Japan, people tend to save too much. For example in Japan the national savings rate fluctuates between 22-40%, while the maximum savings rate in the US has been 10.4% in 1960, it currently is around 7.6%.
Answer:
If a company produces, promotes, and sells bags made of recycled paper, which concept is it using?
The concept used by the company that produces, promotes, and sells bags made of recycled paper is societal marketing concept
Explanation:
This concept simply entails running of a long term interest which does not only suits customers wants alone but also makes the priority of the company paramount.
Answer:
b) overall low-cost leadership
Explanation:
By Michael Porter, this is one of the <em>generic strategies</em>. This strategy implies that the company is dominating the market by securing a low-cost approach across all channels (supplier side, customers, rivals). This is generally achieved by low operating costs and by the factors listed out in the example itself (influencing rivals and suppliers). This type of strategy puts a company ahead of most of its competitors.
Answer:
d. the camry becomes an inferior good because the good is now perceived as lower in quality than a lexus
Explanation:
There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. One such example of a good is the Toyota Camry. In the 1980s, more income for a household usually resulted in more Camrys being purchased. However, today more Toyota Camrys are purchased by households that have experienced a reduction in income.
How could this happen?
<u>This could only have happened because of a change in perception in households over time. </u>
It is stated in the Scenario that ''today more Toyota Camrys are purchased by households that have experienced a reduction in income.''
<u>That means Toyota Camry has become an inferior good that is purchased more when income falls.</u>
<u>Hence, the only reason the scenario would have occurred is that the camry becomes an inferior good because the good is now perceived as lower in quality</u> than a lexus
Answer:
The answer is b Justifies ignoring the matching principle in certain circumstances.
Explanation:
