Answer:
D. agents will immediately adjust their expectations of inflation up.
Explanation:
Expansionary monetary policies are geared towards stimulating economic growth. The Fed can impose lower interest rates or purchase bonds and securities in open market operations as expansionary tools. Lowering interest rates encourages banks and other lending institutions to lend money to firms and households.
Purchasing bonds and securities adds money to the banking system. The increased money will be loaned out to businesses and individuals. The availability of low-cost credit motivates firms to borrow and expands their business capacities. When households borrow with ease, it leads to an increase in consumption expenditure. These actions result in too much money in circulation, which is inflation.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
A net cash outflow or cash used up of $20,000
Explanation:
The statement of cash flows show the movement in cash balances between the start and end of an accounting period. This movement is as a result of 3 groups of activities namely; operating, investing and financing activities.
Cash activities related to elements of working capital are recognized in the operating section. An increase in a current asset other than cash is treated as an out flow of cash while an increase in a current liability is treated as an inflow of cash and vice versa.
Hence the net effect on cash from operations under the indirect method
= -$43,000 + $23,000
= -$20,000
Answer:
b) 100 cars per day.
Explanation:
With the information above, we can conclude that each worker washes 20 cars per day, and earns a wage of $60 per day.
So the total labor costs per day is $60 wage per worker X 4 workers = $240
The total sales revenue per day is: 80 cars washed per day X $5 per wash = $400.
So, we can see that with four workers, the firm has a good profit of = $400 - $240 = $160.
If the firm hired a fifth worker, labor costs would increase to $320 ($240 + $60), the amount of cars washed would increase to 100, and the sales revenue would increase to $500 (100 x $5).
So, profits would increase to $180 ($500 - $320) if the firm hired a fifth worker.
However, productivity should still be stable, so a worker who washed less than 20 cars per day should not be hired, this is why the A option is wrong.
