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FrozenT [24]
2 years ago
5

William McChesney Martin, who served as Chairman of the Federal Reserve in the 1950s and 1960s, is famous for saying that centra

l banks should "take away the punch bowl just as the party is heating up".
What does this saying mean? Why wouldn't we want the "party" to get too exciting? What are the potential impacts of adding too much fuel to the economy?
Business
1 answer:
laiz [17]2 years ago
3 0

Answer:

PART A

The saying means that it should remove the economic incentives when it has reached its peak in order to prevent it from impacting negatively on the economy.

PART B

(1) It can lead to Inflation.

(2) it can lead to reduced Productivity within the economy.

Explanation:Central banks all over the world are known to put incentives and Stimulus factors in place in order to help improve, resuscitate or sustain the economy in terms of crisis, but the impacts of the Incentives or Stimulus programs of the central banks can lead to certain negative consequences if not effectively monitored or removed when necessary.

SOME OF THE NEGATIVE CONSEQUENCES WHICH CAN ARISE IF THE INCENTIVES OR STIMULUS PROGRAMS USED TO SUSTAIN THE ECONOMY ARE NIT REMOVED EXAMPLES INCLUDE IT CAN LEAD TO INFLATION,IT CAN LEAD TO REDUCTION IN THE OVERALL PRODUCTIVITY WITHIN THE ECONOMY ETC.

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Zina [86]

Answer: e) lower wage costs

Explanation: Reduction in the size of the workforce always have an immediate positive result or outcome in the case of lower wage costs. Companies who tend to cut employees and don't restructure experience stress reactions among their employees that can lead to increased sickness absences, lower concentration on the job, and lower creativity. But reduction in wages tend to have positive effects on the company.

6 0
2 years ago
Read 2 more answers
You've been taking notes for your boss during his meetings with the Senior Executive for the organization. You notice that every
mr_godi [17]

Answer:

A- Group think

Explanation:

In group think, bad decisions are often made because, rather than consider other alternatives, a group of people agree to a decision suggested by, in most cases, the most superior party in the room.

This form of thinking hides true opinions of other members of the group and though the decision is agreed upon, they could truly not want to be a part of the process.

In this scenario, there is an agreement with the Senior Executive on the plan of action however, nobody is interested in taking up the responsibility to follow through with the plan. This indicates a level of disagreement of other members with the plan regardless of the initially stated agreement with the plan.  

6 0
2 years ago
Microsoft and a smaller rival often have to select from one of two competing technologies, A and B. The rival always prefers to
Mrrafil [7]

Answer:

True

Explanation:

Microsoft matrix along with his rivals. There are two ways to use the technology. Microsoft and its rival can move simultaneously. The equilibrium strategy can be determined y pay off matrix. The both companies use pure strategy. The criteria for pure strategy is max-min and min-max. The max-min strategy means select least case from all the best cases and min-max is selecting the best case from all the least cases.

4 0
2 years ago
Which of the following best describes how information sharing helps eliminate the bullwhip effect? a) Information sharing reduce
zepelin [54]

Information sharing reduces information lead time, enabling each organization to plan according to end demand and not according to the orders placed immediately downstream.

Explanation:

The Bullwhip effect is a trend of the distribution channel where estimates result of inefficiencies in the supply chain. Of reaction to fluctuations the market demand the inventory swings are growing, as the supply chain continues to grow.

The effect of the bullfight generally flows up the supply chain, starting from the retailer, wholesaler, dealer, producer and then the supplier of the raw materials.

This method does not include daily fluctuations to run level. Another way of reducing the bullwhip effect is by eliminating the delays along the supply chain. In general, the fluctuations in the supply chain can be reduced by 80% by cutting order to supply time by half in both real supply chains and supply chain simulations

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2 years ago
One of the steps the U.S. Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm
Alchen [17]

Answer:

The correct answer is number (1): True.

Explanation:

Due diligence refers to the exercise an individual is subject to after entering a contract with another party by which a certain standard of care is expected from the individual.  

The United States Sentencing Commission is the governmental agency in charge of reviewing sentences discrepancies and promoting fair sentencing.

<em>In front of ethical issues within a firm, the U.S. Sentencing Commission states that the company must have disseminated a code of conduct so that the filing company can allege a violation of the due diligence employees are subject to.</em>

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