All categories

2 years ago

Which of the following explains why the money supply is not completely controlled

1 answer:

4 0

Money is very essential. The statement that explains why the money supply is not controlled is that the actions of private individuals and banks can increase or decrease the money supply via the money multiplier.

Money supply is known to handle all the value of monetary assets in an economy.

Monetary means used includes the most liquid asset in the economy such as cash and reserve deposits.

Money supply in an economy is said to be be estimated by the equation below:

Money supply = monetary base x money multiplier

See full question below

Which of the following explains why the money supply is not completely controlled by the Federal Reserve?

a. The actions of private individuals and banks can increase or decrease the money supply via the money multiplier.

b. The president can issue an executive order that can increase or decrease the money supply.

c. The treasury has say over when the Federal Reserve can increase or decrease the money supply.

d. The actions of private individuals and banks can increase or decrease the money supply via the spending multiplier.

e. Congress has authority to veto any monetary policy enacted by the Federal Reserve.

Learn more from

brainly.com/question/3625390

You might be interested in

The Rowe Corporation uses a standard cost system. The company applies manufacturing overhead to units of product based on machin

Viefleur [7K]

Answer:

Allocated overhead= $216,000

Explanation:

Giving the following information:

Estimated overhead= $225,000

Estimated machine-hours= 25,000

At standard, each unit of finished product requires 3 machine-hours. Units of product completed 8,000 units

<u>To allocate overhead, we need to use the standard number of machine-hours that would take to produce 8,000 units.</u>

First, we need to determine the estimated overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 225,000/25,000= &9 per machine hour

Now, we can allocate overhead:

Allocated overhead= 9*(8,000*3)= $216,000

7 0

4 years ago

Ingraham Inc. currently has $205,000 in accounts receivable, and its days sales outstanding (DSO) is 71 days. It wants to reduce

Mashcka [7]

Answer:

$125,165.49

Explanation:

Daily Sales Outstanding is computed by dividing Average Accounts Receivable over Daily Credit Sales.

In this case, if the DSO is 71, then the Daily Credit Sale is $2,887.3239($205,000/71).

Then, the old sales is $1,053,873.24 ($2887.3239 x 365).

If this is reduced by 15% after the policy is implemented, the new sales is $895,792.25 ($1,053,873.23-15%) and the new daily sales is $2,454.23 ($895,792.25/365).

Using these DSO formula, the new Accounts Receivable level will be $125,165.49 (51 x $2,454.23).

4 0

4 years ago

A monopolist can practice third-degree price discrimination. If demand in the United States is given by y1 = 7,200 – 100p1, wher

Novosadov [1.4K]

Answer:

The difference between the monopolistic price charged in England and the monopolistic price charged in the United States will be = 27

Explanation:

Y1 = 7200 -100p1 = > p1 = 72 – y1/100

Y2 = 3600 – 200p2 = > p2 = 18 – y2/200

The cost of monopolist (since it’s the same firm and uses same technology) shall be same in both countries, hence let us assume marginal cost to be say c

Now the first order condition for Profit Maximisation of a monopolist yields

Marginal Revenue = Marginal cost

= > Marginal Rev US = c = Marginal RevEngland…………………..i

Now, Revenue in US = p1y1 = y1(72 – y1/100)

MR US = dRev/dy1 = 72 – y1/100 -y1/100 = 72 – y1/50

Similarly MREng = 18 – y2/100

Hence putting the above derivations in i:-

72 – y1/50 = 18 – y2/100

Now putting values for y1 and y2 again the above equation becomes:-

72 – (7200 -100p1)/50 = 18 – (3600 – 200p2)/100

= > 54 – 144 + 2p1 = -36 + 2p2

= > 2(p1 – p2) = -36 + 90 = 54

= > p1 – p2 = 27

8 0

3 years ago

Your company has just purchased a new production machine for $100,000. They plan to use this machine for the next 5 years. The m

Kryger [21]

Missing information :

interest rate = 14%

Answer:

annual savings rate per operating hour $0.94

Explanation:

initial investment $100,000

total operating hours = 3,000 x 5 = 15,000 hours

savings first year $35,000

then decrease by 3% per year

annual savings:

year 1 $35,000

year 2 $33,950

year 3 $32,931.50

year 4 $31,943.56

year 5 $30,985.25

we need to determine the PV of the savings per year:

PV = $35,000/1.14 + $33,950/1.14² + $32,931.50/1.14³ + $31,943.56/1.14⁴ + $30,985.25/1.14⁵ = $30,701.75 + $26,123.42 + $22,227.82 + $18,913.15 + $16,092.77 = $114,058.91

NPV of investment = $114,058.91 - $100,000 = $14,058.91

annual savings per operating hour = $14,058.91 / 15,000 = $0.94

5 0

3 years ago

A transfer payment is Group of answer choices a payment that is automatically transferred from your bank account to pay a bill o

-Dominant- [34]

Answer: a form of government expense that is not made in exchange for a currently produced good or service.

Explanation:

Transfer payment are the goods or services that are supplied to the residents of a country. They're the form of government expense that is given to people in the society and such payments are not made due to the exchange of goods or services.

Examples of transfer payments include unemployment benefits, Social Security, etc. The reason behind transfer payments is to help in the redistribution of income and to help the less privileged in the society.

4 0

3 years ago