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Kazeer [188]
2 years ago
11

When current output is less than potential output, which of the given monetary policies is the federal reserve (the fed) likely

to enact?.
Business
1 answer:
PSYCHO15rus [73]2 years ago
8 0

The federal reserve is likely to enact that reserve requirement should be lower so that there will be a decrease the interest rate in the case when current output is less than potential output.

The Federal reserve does enhance the economy by reducing the interest rate that banks pay each other for overnight loans.

  • However, if the current output is greater than potential output, then, the FED would try to reduce current output by increasing the interest rate.

In conclusion, the federal reserve is likely to enact that reserve requirement should be lower so that there will be a decrease the interest rate in this case when the current output is less than potential output.

Read more about this here

<em>brainly.com/question/25517712</em>

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On January 1, Applied Technologies Corporation (ATC) issued $550,000 in bonds that mature in 10 years. The bonds have a stated i
I am Lyosha [343]

Answer:

1. $550,000

Explanation:

1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.

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2. The Journal entries are as follows:

(i) On January 1,

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To bonds payable               $550,000

(To record the bond issuance)

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7 0
3 years ago
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweate
torisob [31]

Answer:

A

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The country with a comparative advantage in the production of a good should export the good

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Scotland

Comparative advantage in the production of scones = 2/40 =  0.05

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England has a comparative advantage in the production of scones and should export scones

Scotland  has a comparative advantage in the production of sweaters and should export sweaters

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