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andrey2020 [161]
2 years ago
15

Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and p

rolonged inflationary trend. What changes in (a) the reserve ratio, (b) the discount rate, and (c) open-market operations would you recommend? Explain in each case how the change you advocate would affect commercial bank reserves, the money supply, interest rates, and aggregate demand. g
Business
1 answer:
Dmitry [639]2 years ago
6 0

Answer:

Explanation:

1. Assuming an economy is experiencing a sharp and prolonged inflationary trend, I'll recommend the following changes:

a. Reserve ratio: I will increase the reserve ratio.

b. Discount rate: I will increase the discount rate.

c. Open market operations: I will recommend tightening the money supply through the selling of more government bonds.

2a. The reserve requirement is the central bank regulation which sets the minimum amount of reserves which must be held by a commercial bank. An increase in the reserve ratio will lead to less money in circulation.

b. the money supply: Thhe money supply will contract i.e tighten

c. Interest rates: Interest rates will rise leading to an increase in the investments which keeps money out of circulation and also lead to a decrease in inflation rates.

d. Aggregate demand. Aggregate demand would reduce, and this would lead to a reduction in inflation.

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: A Notary Signing Agent decides to expand his business by offering new services. With respect to advertising, the NSA should av
enot [183]

A Notary Signing Agent decides to expand his business by offering new services. With respect to advertising, the NSA should avoid advertising himself in a place that is already being occupied by another Notary and advertising himself during meetings. It is important for a new Notary Signing Agent to advertise himself and his services, but there is a proper way to handle any and all advertisements.

7 0
2 years ago
a) Terry wants to know the holding period return for a stock that he bought a year ago for $100 per share. The stock is now wort
USPshnik [31]

Answer:

holding period yield is 9.25%

Dividend yield is 0.25%

Capital gains yield is 9.00%

Explanation:

Holding period yield is the total return that accrues to an investment over a period which the investment is owned.

Holding period yield=(Current price-Initial price+dividend)/initial price

current price is $109

initial price is $100

dividend is $0.25

holding period yield =($109-$100+$0.25)/$100

                                  =9.25%

Dividend yield =dividend/initial price

                        =$0.25/$100

                        =0.25%

Capital gains yield=(Current price-initial price)/initial price

                              =($109-$100)?$100

                              =9.00%

Invariably holding period yield is the dividend yield plus capital gains yield.

6 0
2 years ago
Read 2 more answers
Gloria, the controller of luna pizza, is purchasing several new delivery vehicles. gloria has numerous work responsibilities, so
Natasha_Volkova [10]

Answer: (E) Satisficing

Explanation:

 The satisficing is one of the type of satisfactory model that helps in understanding the various types circumstances that helps in creating the various types of decisions.

The satisficing is the process of performing the various types of strategies for achieving the desirable result and it basically explain the various types of behaviors of the decision process.

According to the given question, Gloria is using the satisficing model for the purpose of providing the satisfaction by choosing the best alternative.  

 Therefore, satisficing is the correct answer.

7 0
2 years ago
Lopez Corporation incurred the following costs while manufacturing its product Materials used in product Depreciation on plant P
Sonja [21]

Answer:

See attached file

Explanation:

4 0
2 years ago
Each month jessica buys exactly 15 big macs regardless of the price. jessica's price elasticity of demand for big macs is:
faust18 [17]

Price of elasticity of demand represents the measure of the change in the quantity demanded of a product in relation to its price change. The fact that Jessica buys each month exactly teh same quantity of the roduct (Big Mac) no matter what the price of the product ismeans that Jessica's price elasticity of demand for Big Macs is: 0.

In this situation the price of the product does not affect the demand.


7 0
1 year ago
Read 2 more answers
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