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ale4655 [162]
2 years ago
15

Assume the economy is operating at less than full employment. An expansionary monetary policy will cause interest rates to _____

___, which will ___________ investment spending.
Business
1 answer:
adoni [48]2 years ago
7 0

When the economy is not at full employment and an expansionary monetary policy is followed:

  • Interest rates decrease
  • Investment spending increases

When there is an expansionary monetary policy in place, more money is pumped into the economy which means that there are more loanable funds. This increase in the supply of loanable funds will decrease the interest associated with them.

As a result of interest rates being lower, more businesses and people will be able to borrow money and invest in projects thereby increasing investment spending.

In conclusion, there will be an increase in investment spending due to a decrease in interest rates.

<em>Find out more at brainly.com/question/2343055. </em>

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nika2105 [10]

Answer:

Answer for the question:

Consider a two-period model of a small open economy with a single good each period. Let preferences of the representative household be described by the utility functionln(C1) + ln(C2),where C1 and C2 denote consumption in periods 1 and 2, respectively, and ln denotes the natural logarithm. In period 1, the household receives an endowment of Q1 = 5. In period 2, the household receives profits, denoted by ?2, from the firms it owns. Households and firms have access to financial markets where they can borrow or lend at the interest rate r1. (r1 is the interest rate on assets held between periods 1 and 2.).Representative firm borrows D1f in period 1 to make investment I1 that enable the firm to produce goods in period 2. The production technology in period 2 is given byQ2 = ?(I1),where Q2 and I1 denote, respectively, output in period 2 and investment in period 1.Assume that there exists free international capital mobility and that the world interest rate, r*, is 10% per period (i.e., r* = 0.1). Finally, assume that the economy’s initial net foreign asset position is zero (B0* = 0)c) Find the country’s net foreign asset position at the end of period 1, the trade balance in periods 1 and 2, and the current account in periods 1 and 2.d) Now consider an investment surge. Specifically, assume that as a result of a technological improvement, the production technology becomes Q2 = 2?(I1). Find the profit maximizing level of investment made in period-1 and the level of profit for period-2. Find the equilibrium levels of saving, the trade balance, the current account, and the country’s net foreign asset position in period 1.

Is given in the attachment.

Explanation:

6 0
3 years ago
What is the maximum fine that the Real Estate Commission can impose for a violation of commission rules?
-Dominant- [34]

Answer:

varies depending on the state

Explanation:

For example, the Florida Real Estate Commission's (FREC) fines range from $250 to $5,000.

For first offenders, administrative fines range from $250 to $1,000, and the license can be suspended or revoked.

For repeat offenders, administrative fines range from $1,000 to $5,000, and the license can be suspended or revoked.

4 0
3 years ago
Aloan Co. provides the following sales forecast for the next three months: January February March Sales units 3,000 4,200 5,000
Natalka [10]

Answer:

Total= 3,120 units

Explanation:

Giving the following information:

production budget:

January= 3,000 units

February= 4,200 units

March= 5,000 units

The company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales.

Beginning inventory= 300 units.

To calculate the production for any month, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

<u>January:</u>

Sales= 3,000

Desired ending inventory= (4,200*0.1)= 420

Beginning inventory= (300)

Total= 3,120 units

6 0
3 years ago
What is the logic behind co-locating purchasing personnel with internal customers?
almond37 [142]
There are certain advantages that the organization can understand from co-locating <span>purchasing personnel with internal customers</span>. The primary huge advantage is low expenses of task. In addition, the organization will give enhanced administrations to the organization since the organization will distribute to each customer a faculty in charge of giving them the administrations they require. This additionally has an arrangement of getting a great administration by the clients since they get customized treatments. The most noteworthy advantage related with this is the organization will improve its reputation and draw in various customers.
6 0
3 years ago
If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, i
julsineya [31]

Answer:

D

Explanation:

If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.

6 0
3 years ago
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