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shusha [124]
3 years ago
13

When current output is greater than potential output, which of the given monetary policies is the Federal Reserve (the Fed) like

ly to enact
Business
1 answer:
choli [55]3 years ago
7 0

When the current output is more than the potential output the fed is likely to enact decreasing reserves to increase interest rates.

The reason why they would have to do this is based on the fact that when the actual output in the economy is more than the potential output, It means that there is an inflationary gap.

In order to close this gap, the fed would have to reduce the aggregate demand, thereby raising the rate of interest. This would in turn lead to the fall in consumption and fall in saving.

Read more on brainly.com/question/11417698?referrer=searchResults

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Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he rents equipment for ​$1
mina [271]

Answer:

-$475,000

Explanation:

Total revenue = Baskets of peaches × Price

                       = 100,000 × $3

                       = $300,000

Explicit cost:

= Rent equipment + wages

= $100,000 + $100,000

= $200,000

Implicit cost:

= Land × Interest + salesman earned

=  $1,000,000 × 0.55 + $25,000

= $575,000

Total cost = Explicit cost: + Implicit cost

                = $200,000 + $575,000

                = $775,000

Economic profit = Total revenue - Total cost

                           = $300,000 - $775,000

                           = -$475,000

8 0
3 years ago
The following information was available for the year ended December 31, 2019 Net sales Cost of goods sold Average accounts recei
Tom [10]

Answer:

a. Inventory Turnover:

= Cost of goods sold / Average inventory for the year

= 642,400 / 210,000

= 3.06

b. Number of days' sales in inventory

= Ending inventory / (COGS / 365)

= 156,409 / (642,400 / 365)

= 88.9 days

c. Accounts receivable turnover

= Net sales / Average Accounts Receivable

= 1,022,000 / 43,000

= 23.77 times

d. Number of days sales in accounts receivable

= Accounts Receivable at year end / (Net sales / 365)

= 22,400 / (1,022,000 / 365)

= 8 days

3 0
3 years ago
What is the largest category calculated when using the expenditure approach to calculate GDP?
Leya [2.2K]
When using the expenditure approach, we are looking at the total spending of a business that is included in the equation to compute for GDP. For this, I would say government purchases is the answer because government purchases would take up the biggest chunk of a country's revenue for development and imports.  
4 0
3 years ago
Tryon Corp. and Sandoval, Inc. were joint owners of the former Sandy Glass manufacturing facility. An environmental assessment f
kotegsom [21]

Answer:

One company pays 100%, the other re-reimburses 50%  

Explanation:

If an environmental assessment found that the two companies share joint and several liability for a hazardous materials cleanup.

What could happen if the two of them don't agree to cooperate in the cleanup is that one of the companies will eventually settle the costs fully while the other party will have to reimburse the party that pays, 50%.

The paying company could make claims because the environmental impact assessment has already found both companies jointly liable. hence each company ought to jointly share the costs

4 0
3 years ago
Read 2 more answers
Currently the price of Titanic stock is $20 a share. You have $40,000 of your own funds to invest. Using the initial margin of 5
PtichkaEL [24]

Answer:

The percentage profit if you purchase the stock and it rises to $30 a share

= $166.67

Explanation:

Titanic stock is $20 a share. You have $40,000 of your own funds to invest.

∴ $4,000.00/$20 = 200.00 shares were bought with $4,000.00

With margin of 50 percent and maintenance margin of 30 percent,

50% + 20% = 80%

∴  New Cost of Stock ($30.00) ÷ $4,000.00)

= $133.33 X 0.80

= $166.67

6 0
3 years ago
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