Low interest rates create economic distortions, especially when real, inflation-adjusted interest rates are positiveTrueFalse

Answers

Answer 1

The given statement "Low interest rates can indeed create economic distortions, particularly when real, inflation-adjusted interest rates are positive" is true. This is because low interest rates encourage borrowing and spending, while discouraging saving.

What if real interest rates are positive?

When real interest rates are positive, it means that the nominal interest rate is greater than the inflation rate, making borrowing more attractive as the cost of borrowing is lower.

This situation can lead to increased consumption and investment, potentially causing economic distortions such as asset price bubbles, over-investment in certain sectors, and unsustainable levels of debt.

When these distortions eventually correct themselves, they can cause financial instability and economic downturns.

Learn more about low interest rate at

https://brainly.com/question/29639986

#SPJ11


Related Questions

Borrowing from _____ is not advisable.a. relativesb. consumer finance companiesc. asset management companiesd. credit unionse. commercial banks

Answers

The correct answer is b. consumer finance companies. Borrowing from relatives Asset management companies and commercial banks may also be viable options for borrowing.

depending on individual circumstances, however, borrowing from consumer finance companies typically comes with high-interest rates and fees, This is because they often charge higher interest rates and fees compared to credit unions and commercial banks, making them a less favorable option for borrowing money.

relatives or credit unions may be advisable as they often offer lower interest rates and more flexible repayment terms. however, borrowing from consumer finance companies typically comes with high-interest rates and fees, making it not advisable for most borrowers. Borrowing from consumer finance companies is not advisable. This is because they often charge higher interest rates.

To know more about high-interest:- https://brainly.com/question/3347742

#SPJ11

cups? (8 pts) 4. (18 points) John is completing his college program in 2 years and receives his degree. This program is usually done in 4 years. Under what circum- stances would receiving his college degree in two years have a negative effect on his employability and/or salary? ono un light and 117 it fim in mod biol

Answers

Under certain circumstances, receiving a college degree in two years instead of the usual four years may have a negative effect on John's employability and/or salary. These circumstances may include:

1. Insufficient practical experience: Employers might be concerned that John lacks hands-on experience or internships due to the shortened program duration.

2. Perceived lack of commitment: Employers might question John's dedication and ability to commit long-term since he completed the program in half the time.

3. Limited networking opportunities: John may have had less time to build connections with peers, professors, and professionals in his field, which could affect job prospects.

4. Possible knowledge gaps: With a condensed program, John might have missed out on essential courses or electives that could enhance his skills and employability in the job market.

These factors, depending on the specific industry and job requirements, might negatively impact John's employability and/or salary despite obtaining his degree in two years.

Learn more about circumstances here:

https://brainly.com/question/14485159

#SPJ11

Selective exposure is most likely to occur during which stage of the consumer purchase decision process?

Answers

Selective exposure is most likely to occur during the stage of post-purchase behavior of the consumer purchase decision process.

The process by which consumers decide what to buy is known as the consumer decision-making process. It involves the consumer becoming aware of and identifying their wants, gathering knowledge about the best ways to address those needs, weighing various available options, making a purchasing decision, and evaluating their purchase.

All customers go through fundamental phases when making a purchase to decide which goods and services will best suit their needs, even though the process of consumer decision-making can appear mysterious. Prior to making a purchase, you evaluate your needs, do some research, and weigh your possibilities.

Learn more about Consumer decision-making:

brainly.com/question/28900762

#SPJ4

1.5 Relative to a monopoly charging a single price to all consumers, perfect price discrimination producer surplus and consumer surplus. A. increases; decreases B. increases; increases C. decreases; decreases D. decreases; increases

Answers

The correct answer is D. When a monopolist engages in perfect price discrimination, they charge each consumer the maximum price they are willing to pay, resulting in no consumer surplus.

However, producer surplus increases as the monopolist is able to capture all of the consumer surplus for themselves.

Therefore, relative to a monopoly charging a single price to all consumers, perfect price discrimination decreases consumer surplus but increases producer surplus.
Relative to a monopoly charging a single price to all consumers, perfect price discrimination producer surplus increases and consumer surplus decreases. So, the correct answer is A. increases; decreases.

Visit here to learn more about monopolist brainly.com/question/29763908

#SPJ11

. During an induction program, Ravi lets the new recruits know that all the senior associates in the company should be addressed as either "Sir" or "Ma’am" depending on their gender. In this scenario, Ravi is using _____. a) haptics b) proxemics c) honorific speech d) code frame switching. During an induction program, Ravi lets the new recruits know that all the senior associates in the company should be addressed as either "Sir" or "Ma’am" depending on their gender. In this scenario, Ravi is using _____. a) haptics b) proxemics c) honorific speech d) code frame switching

Answers

In this scenario, Ravi is using honorific speech during the induction program to inform the new recruits about the appropriate way to address senior associates in the company.

to know more about the honorific speech:

https://brainly.com/question/31354902

#SPJ11

A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is referred asA. five forces analysis.B. competitive advantage.C. ​value-chain analysis.D. resources view.

Answers

The correct option is C. value-chain analysis. It involves analyzing a firm's value chain, which is the set of activities that the firm performs in order to deliver a valuable product or service to the market.

Value-chain analysis is a method that managers use to evaluate the resources they have and manage or alter them to achieve competitive advantage. By analyzing each activity in the value chain, managers can identify areas where they can reduce costs, improve quality, or differentiate their products or services from those of their competitors. This can help the firm achieve a sustainable competitive advantage over time.

Five forces analysis and the resources view are related concepts that can be used in conjunction with value-chain analysis. Competitive advantage refers to the ability of a firm to outperform its competitors in terms of profitability or market share.

Learn more about value-chain analysis at

brainly.com/question/1380316

#SPJ4

As a result of using the marginal cost pricing rule to regulate a natural monopoly a. the natural monopoly earns a normal profit. b. the monopolist produces an inefficient amount of product. . c. it yields a smaller consumer surplus than does a average cost pricing rule.d. the monopolist is allowed to cover all its costs and carn a normal profit.e. the natural monopoly will incur a negative profit.

Answers

As a result of using the marginal cost pricing rule to regulate a natural monopoly, the natural monopoly earns a normal profit.

This is because the monopolist is allowed to cover all its costs and earn a normal profit. In this scenario, the monopolist produces an efficient amount of product, and it may yield a larger consumer surplus compared to the average cost pricing rule. However, the natural monopoly will not incur a negative profit.

When a natural monopoly uses the marginal cost pricing rule to regulate its pricing, it allows the monopolist to cover all its costs and earn a normal profit. This is because the marginal cost pricing rule sets the price equal to the marginal cost of production, which means that the monopolist is producing at the efficient level of output. This pricing rule also results in a larger consumer surplus compared to using an average cost pricing rule, as it allows for more efficient allocation of resources. Therefore, option (d) is the correct answer, while options (a), (b), (c), and (e) are incorrect.

Learn more about marginal cost here: brainly.com/question/7781429

#SPJ11

if a company is concerned with the potential negative effects of establishing standards, it should question 18 options: set loose standards that are easy to fulfill. offer wage incentives to those meeting standards. not employ any standards. set tight standards in order to motivate people.

Answers

If a company is concerned with the potential negative effects of establishing standards, it should question the option to "set tight standards in order to motivate people."

Setting tight standards may lead to higher performance expectations, which can increase stress and pressure on employees. This can negatively affect morale and job satisfaction, and may even lead to burnout or turnover. In addition, setting tight standards may not always be feasible or realistic, and may discourage employees from even attempting to meet the standards.

Instead, the company should consider setting standards that are challenging but achievable, and that take into account the resources and capabilities of the employees and the organization as a whole. Additionally, offering incentives or rewards for meeting standards can help motivate employees and create a positive work environment.

Learn more about employees here:

https://brainly.com/question/21847040

#SPJ11

An innovation audit is best conducted by:
a. An online survey
b. An experienced manager
c. An external consultant
d. A trusted non-manager

Answers

An innovation audit is best conducted by an external consultant. This is because an external consultant brings a fresh perspective and expertise in conducting such audits. They have the necessary skills, tools, and knowledge to assess and evaluate an organization's innovation practices and suggest improvements. In addition, they are not biased or influenced by internal politics or relationships within the organization, which ensures an objective and unbiased assessment.

An innovation audit is a systematic assessment of a company's innovation capabilities and performance. It involves a comprehensive review of the company's innovation strategy, processes, resources, culture, and outcomes to identify strengths, weaknesses, and opportunities for improvement. The purpose of an innovation audit is to help companies assess their innovation maturity and effectiveness, and develop a roadmap for enhancing their innovation performance. An innovation audit can also help companies benchmark their innovation capabilities against industry standards and best practices, and identify areas where they can learn from other companies or industries.

Learn more about innovation audit here:

https://brainly.com/question/29979411

#SPJ11

He is in charge of the team which consists of the subordinates under his authority. This is an example of a _______ team. a. functional b. social c. horizontal d. self-managed e. special-purpose

Answers

The example given is of a functional team. A functional team is formed based on the functions or departments within an organization, where individuals with similar skills or expertise come together to work towards a common goal.

In this case, the team is led by a manager who is responsible for overseeing the subordinates under his authority. This suggests that the team is structured in a hierarchical manner, with clear lines of authority and communication. The focus of a functional team is on achieving operational efficiency and effectiveness, with members working together to complete tasks and achieve specific goals. On the other hand, a social team is formed based on the relationships between individuals, and is often focused on building social connections and relationships within an organization. A horizontal team consists of individuals from different departments or functions within an organization who come together to work on a specific project or task. A self-managed team is one where the members are responsible for managing themselves and making decisions collectively. A special-purpose team is formed for a specific and unique purpose or project, and is often temporary in nature.

Learn more about organization here

https://brainly.com/question/19334871

#SPJ11

(T/F) To raise the funding that's often critical to grow their startup, founders are forced to relinquish a level of control for their startup.

Answers

True.

To raise funding for their startup, founders often have to give up some level of control to investors, whether it be in terms of decision-making, equity ownership, or other aspects of the business. This is because investors typically want to have a say in how their money is being used and want to protect their investment. This can be a difficult decision for founders, as they may have to give up some autonomy and control over the direction of their company.

Five situational influences have an impact on a consumer's purchase decision process. They are: __________, social surroundings, physical surroundings, temporal effects, and antecedent states.

Answers

The five situational influences that have an impact on a consumer's purchase decision process are Task definition, social surroundings, physical surroundings, temporal effects, and antecedent states.

1. Physical surroundings: This refers to the environment or setting in which the purchase decision is made. It includes factors such as lighting, noise levels, temperature, and overall atmosphere.

2. Social surroundings: This refers to the presence or influence of other people during the purchase decision process. It includes factors such as the opinions, attitudes, and behaviors of family, friends, and other social groups.

3. Time: This refers to the amount of time available for the purchase decision process, as well as the timing of the purchase decision relative to other events or activities in the consumer's life.

4. Antecedent states: This refers to the consumer's mood, physical condition, and other personal factors that may influence the purchase decision process.

5. Task definition: This refers to the nature of the purchase decision itself, including the level of involvement or importance the consumer places on the decision, and whether it is a routine or complex purchase decision.

Learn more about situational influences at

brainly.com/question/13138968

#SPJ4

1. Tell me one of your weaknesses and what you have done in thepast 6 months to improve it. 4 marks2.. What animal best describes you and why? 4 marks

Answers

1. One of my weaknesses is procrastination. To improve this, I have started using a planner to schedule my tasks and set deadlines for myself. I have also been practicing the Pomodoro Technique, where I work for 25 minutes straight and take a break for 5 minutes, to help me stay focused and productive.

2. If I had to choose an animal that best describes me, I would say it's a dolphin. Dolphins are intelligent, playful, and social creatures that enjoy interacting with others. Similarly, I consider myself to be a friendly and outgoing person who enjoys spending time with friends and family. I also value learning and growth, and like dolphins, I am always eager to explore new things and challenge myself to become better.

To know more about procastination click here

https://brainly.com/question/30843622

#SPJ11

jim purchased 2 pieces of furniture that had been foreclosed on by a local bank for a total of 330,000. when he sold these properties on the first piece jim earned a profit of 12% but on the second piece he lost 8%. his total profit was 18,000 how much did jim pay for each property

Answers

Jim paid $390,000 for the first piece of furniture and $330,000 - $390,000 = $-60,000 (or a loss of $60,000) for the second piece of furniture.

Let's call the price that Jim paid for the first piece of furniture "x" and the price he paid for the second piece "y". We can set up two equations based on the information given:

Equation 1: x + y = 330,000 (this represents the total amount Jim paid for both pieces)

Equation 2: 0.12x - 0.08y = 18,000 (this represents Jim's total profit)

To solve for x and y, we can use substitution or elimination. I'll use elimination here:

First, we need to get rid of the decimal points in equation 2. We can do this by multiplying both sides by 100:

12x - 8y = 1,800,000

Next, we can multiply equation 1 by -8 so that we can eliminate the y variable:

-8x - 8y = -2,640,000

Now we can add the two equations together:

4x = -840,000

Dividing both sides by 4, we get:

x = -210,000

Uh oh, that's a negative number! But that actually makes sense, because we know that Jim lost money on the second piece of furniture, so the amount he paid for that piece must be less than the amount he paid for the first piece. So we can assume that x is the price Jim paid for the second piece, and y is the price he paid for the first piece:

Equation 1 becomes: x + y = 330,000

Equation 2 becomes: -0.08x + 0.12y = 18,000

Using elimination again, we can multiply equation 2 by 25 to get rid of the decimal points:

-2x + 3y = 450,000

Now we can add the two equations together:

x + y - 2x + 3y = 330,000 + 450,000

Simplifying:

2y = 780,000

Dividing both sides by 2, we get:

y = 390,000

Learn More about furniture here :-

https://brainly.com/question/31441324

#SPJ11

True or false? One-to-one engagement doesn't result in customers spending more.

Answers

One-to-one engagement, also known as personalized marketing, has been shown to be an effective strategy for increasing customer engagement and spending thus the statement is false.

Personalized marketing involves tailoring marketing messages and offers to individual customers based on their interests, preferences, and behavior. Studies have shown that personalized marketing can result in higher customer engagement and spending. For example, a study by Epsilon found that personalized emails had a 29% higher open rate and 41% higher click-through rate than non-personalized emails.

Another study by Evergage found that personalized web experiences resulted in a 20% increase in customer engagement and a 19% increase in sales. Overall, personalized marketing can help businesses build stronger relationships with customers, increase customer loyalty, and drive sales. By tailoring marketing messages and offers to individual customers, businesses can better meet their needs and preferences, leading to higher engagement and spending.

Learn more about customer engagement at

brainly.com/question/14476896

#SPJ4

Towards the end of 2009 the pound fell to a six month low of 1.0628 Euros. Figures released by the UK government suggested that demand was still low in the country. The pound was also under downward pressure because of the low value of the interest rate. A recent report suggested these would remain at their historic low of 0.5% until 2014. Business confidence in general remained frail and there was concern over when the UK economy would start to recover from its negative growth. There was huge excess capacity in the UK. In addition the government had a huge deficit which was expected to cause problems with cutbacks and tax increases in the future.Questions 1. Explain what determines the value of a currency.2. Analyze why the pound might have fallen so low towards the end of 2009.3. Analyze the possible effects on the UK economy of a fall in the value of the currency.

Answers


The pound might have fallen so low towards the end of 2009 due to a combination of factors. Firstly, there was low demand in the UK due to the fragile business confidence and negative growth. This reduced the demand for the pound, causing its value to decrease.

Secondly, the low value of the interest rate also put downward pressure on the pound. This is because lower interest rates make a currency less attractive to investors who seek higher returns on their investments. Finally, the excess capacity in the UK and the government's huge deficit also contributed to the pound's fall as investors may have been concerned about the country's economic future. A fall in the value of the currency can have both positive and negative effects on the economy. On the positive side, it can make exports more competitive as they become cheaper for foreign buyers, which can boost demand and economic growth. However, a fall in the currency can also increase the cost of imports, which can lead to inflation. This can make goods and services more expensive for consumers, reducing their purchasing power and potentially leading to a decrease in economic growth.

Additionally, a fall in the currency can lead to higher borrowing costs as investors demand higher interest rates to compensate for the increased risk. This can make it more difficult and expensive for businesses and individuals to borrow, which can also impact economic growth. Overall, the effects of a fall in the value of the currency will depend on various factors such as the state of the economy, the level of exports and imports, and the actions taken by the government and central bank.
Read more about economic future here:https://brainly.com/question/19904900

#SPJ11

2. Let's say that the standard error on the estimate of expenditure is 0.257. Assume that the model was estimated with 24 observations of data. Using the t-table (found in the slides), calculate the p-value of the estimate and comment on the statistical significance. (Hint: To calculate the p-value, you need the degrees of freedom, which is equal to. the number of observations – the number of explanatory variables in the model - 1.)

Answers

Calculate the t-value using the estimate and standard error (0.257), then use the t-table with df = 22 to find the p-value, and finally, comment on the statistical significance based on the obtained p-value.

To calculate the p-value, first we need to determine the degrees of freedom (df). Given that there are 24 observations and the formula for df is (number of observations - number of explanatory variables - 1), we'll assume there is only one explanatory variable in the model.

Degrees of freedom (df) = 24 - 1 - 1 = 22

Now, we need to find the t-value for our estimate. The standard error of the estimate is given as 0.257. To find the t-value, we would typically divide the estimate by the standard error. However, the estimate itself is not provided in the question. Assuming you have the estimate, you can find the t-value by dividing the estimate by 0.257.

Next, using the t-table with df = 22, you can find the p-value corresponding to the calculated t-value. A lower p-value (typically below 0.05) indicates a statistically significant relationship between the explanatory variable and the dependent variable (expenditure). If the p-value is greater than 0.05, then the relationship is not statistically significant.

Learn more about t-value here:-

https://brainly.com/question/21565284

#SPJ11

Maxine has an auto loan that she has to pay. She will make monthly payments over five years. She has a(an):
A.) Unsecured loan
B.) Non-installment loan
C.) Balloon payment loan
D.) Installment loan

Answers

Maxine's loan, which requires her to make monthly payments over five years, is an example of an installment loan.

What kind of loan is an installment loan?

An installment loan is a type of loan that is repaid in regular, fixed payments, typically monthly, over a specified period of time, known as the loan term. Each payment made by the borrower includes both principal and interest, and the loan is fully repaid by the end of the loan term.

In this case, Maxine's auto loan requires her to make regular monthly payments, which indicates that it is an installment loan. The loan is secured by the vehicle itself, as it is an auto loan, meaning that the vehicle serves as collateral for the loan. If Maxine fails to make the required payments, the lender may have the right to repossess the vehicle to satisfy the outstanding debt.

Unsecured loans, on the other hand, do not require collateral and are typically based on the borrower's creditworthiness.

Non-installment loans, also known as single-payment or payday loans, are loans that are typically due in full, including the principal and interest, on a specific date, rather than repaid in regular installments.

Balloon payment loans are loans that have regular installment payments over the loan term, but with a larger "balloon" payment due at the end of the loan term. In Maxine's case, based on the information provided, an installment loan is the most appropriate description for her auto loan.

To know more about installment loans visit:

https://brainly.com/question/30049275

#SPJ11

How long should you keep documents relating to investments?:
a. No need to since the broker probably has a copy
b. As long as you own them
c. Seven years
d. Ten years
e. Permanently

Answers

The recommended period for keeping documents relating to investments is Seven years.

It is important to keep documents related to investments as they provide essential information about transactions, cost basis, and tax implications. As a general rule, it is recommended to keep these documents for at least seven years after the investment is sold or redeemed.

Seven years is a commonly recommended time frame because it is the period during which the IRS can audit tax returns. However, certain documents may need to be kept longer than seven years, such as those related to the purchase of a home or other significant assets.

While some brokers may keep copies of investment documents, it is still important to maintain personal records for tax and other purposes.

Learn more about assets here:

https://brainly.com/question/13848560

#SPJ11

the shareholders' equity of green corporation includes $232,000 of $1 par common stock and $430,000 par of 7% cumulative preferred stock. the board of directors of green declared cash dividends of $53,000 in 2024 after paying $23,000 cash dividends in each of 2023 and 2022. what is the amount of dividends common shareholders will receive in 2024?

Answers

If a shareholder owns 100 shares of common stock, they will receive a dividend payment of $3.02.

To calculate the amount of dividends that common shareholders will receive in 2024, we need to take a few steps. First, we need to determine how much of the $53,000 in dividends is allocated to the preferred shareholders. Since the preferred stock has a cumulative feature, any missed dividends from previous years must be paid first. In this case, Green Corporation paid $23,000 in dividends in each of 2022 and 2023, so the preferred shareholders have received a total of $46,000 in dividends. This leaves $7,000 ($53,000 - $46,000) in dividends available to be paid to the common shareholders.

Finally, we can calculate the amount of dividends per share that the common shareholders will receive. We do this by dividing the $7,000 available for common shareholders by the number of outstanding shares of common stock.

Dividend per share = Dividends available to common shareholders / Number of outstanding shares of common stock

Dividend per share = $7,000 / 232,000

Dividend per share = $0.0302

Therefore, common shareholders of Green Corporation will receive a dividend of $0.0302 per share in 2024.

To know more about dividend here

https://brainly.com/question/29510262

#SPJ4

what are the main drivers of profitability for a health insurer? how do you see industry profitability changing in the next 5 to 10 years?

Answers

Answer regarding the main drivers of profitability for a health insurer would be a combination of factors such as pricing strategy, administrative costs, underwriting and claims management, and investment income.

Pricing strategy involves setting premiums that are high enough to cover the costs of providing healthcare services, but not so high that they deter customers from purchasing insurance. Administrative costs refer to the expenses associated with running the business such as salaries, marketing, and technology expenses.

Underwriting and claims management involve assessing the risk of potential customers and effectively managing claims to minimize losses. Investment income is also a significant driver of profitability for health insurers as they often invest the premiums, they collect to generate additional revenue.

The main drivers of profitability for a health insurer include premium pricing, efficient claims management, cost containment, and risk management. In the next 5 to 10 years, industry profitability may change due to factors such as regulatory changes, increased use of technology, and a greater focus on preventive care.

To learn more about pricing strategy visit:

brainly.com/question/14595156

#SPJ11

what are the following is considered an external cause of business cycles:a. climatic changesb. money supplyc. inventory levelsd. aggregate demand

Answers

Option A - climatic changes - is considered an external cause of business cycles. Climatic changes can have a significant impact on certain industries, such as agriculture, tourism, and transportation.

They can affect the overall economy and lead to fluctuations in business cycles. Money supply, inventory levels, and aggregate demand are internal factors that can influence business cycles. Climatic changes, such as natural disasters or fluctuations in weather, can impact the economy and lead to business cycles. These factors are external because they are not directly related to the business activities or the economic system itself. On the other hand, money supply (b), inventory levels (c), and aggregate demand (d) are considered internal factors, as they are directly linked to the economic activities within a country.

Learn more about Inventory here:

https://brainly.com/question/28916857

#SPJ11

ssume that the exchange rate between the United States and Japan is equal to 0.0080 S/yen. Price in the Price United States in Japan Pound of Tomatoes $1.80 225.00 yen Pound of Carrots $2.00 270.00 yen Pound of Cucumbers $5.40 675.00 yen Pound of Green Beans $1.50 200.00 yen Round prices to two decimal places. In which of the markets below does purchasing power parity (PPP) hold? a. In the market of cucumbers. b. In the market of green beans. c. In the market of carrots d. In the market of tomatoes.

Answers

PPP holds in the market of green beans as the price of green beans in the US and Japan is the same when converted to yen using the exchange rate of 0.0080 S/yen. In other markets, the prices differ when converted to yen, indicating that PPP does not hold.

PPP is a theory that suggests that exchange rates should adjust to ensure that a basket of goods has the same price across different countries. If PPP holds, then the cost of living in different countries should be the same, once exchange rates are taken into account.

However, in reality, many factors can cause deviations from PPP, such as trade barriers, transportation costs, and taxes.

For more questions like Cost click the link below:

https://brainly.com/question/30045916

#SPJ11

Question 2 Assess the effects of (a) Price ceiling (b) Price floor (Hint: Government policies and intervention)

Answers

Price ceilings and price floors are two types of government intervention in the market that affect the equilibrium price and quantity of goods and services.

A price ceiling is a maximum price set by the government that prohibits the price from going above a certain level. This policy is usually implemented to protect consumers from high prices that might arise due to supply and demand imbalances.

On the other hand, a price floor is a minimum price set by the government that prohibits the price from falling below a certain level. This policy is usually implemented to protect producers from low prices that might arise due to supply and demand imbalances.

For example, minimum wage laws are a form of price floor that set a minimum hourly wage for workers. The result of a price floor is a surplus of the good or service in question, as supply exceeds demand, and consumers are unwilling or unable to purchase at the higher price.

The effects of price ceilings and price floors can vary depending on the specific market conditions and government policies in place. However, in general, price ceilings result in shortages, reduced quality, and black markets, while price floors result in surpluses, reduced demand, and decreased efficiency.

for more such questions on intervention

https://brainly.com/question/31480190

#SPJ11

If nominal GDP is $520 billion and the velocity of circulation is 2.5, what is the size of the money supply? Provide answer to one decimal point.

Answers

Therefore, the size of the money supply is $208 billion.

To find the size of the money supply when the nominal GDP is $520 billion and the velocity of circulation is 2.5, you can use the formula MV = PQ. In this case, M represents the money supply, V is the velocity of circulation (2.5), P is the general price level, and Q is the real GDP. Since nominal GDP (PQ) is given as $520 billion, you can rearrange the formula to find M: To calculate the size of the money supply, we can use the equation of exchange, which is:Nominal GDP = Money supply x Velocity of circulation.

We can rearrange this equation to solve for the money supply:Money supply = Nominal GDP / Velocity of circulation.Substituting the given values, we get:Money supply = $520 billion / 2.5 = $208 billionTherefore, the size of themoney supply is $208 billion.

Learn more about velocity of circulation here:https://brainly.com/question/27996337

#SPJ11

In contrast to the international trade approach, the self-sufficiency approach to development

Answers

The self-sufficiency approach to development differs from the international trade approach in several ways.

While the international trade approach advocates for countries to specialize in the production of goods that they have a comparative advantage in and trade with other countries to obtain goods they cannot produce efficiently, the self-sufficiency approach encourages countries to produce everything they need domestically, regardless of whether they have a comparative advantage or not. This approach seeks to protect domestic industries, reduce reliance on foreign imports, and promote economic independence.

The self-sufficiency approach is often associated with import substitution industrialization, where countries invest heavily in domestic industries and erect trade barriers to protect them from foreign competition. However, this approach has been criticized for being inefficient and promoting the production of goods that are not globally competitive. Additionally, it can lead to higher costs for consumers, lower quality goods, and less innovation.

In contrast to the international trade approach, the self-sufficiency approach places a higher value on domestic production and economic independence, even if it comes at the expense of global competitiveness and efficiency.

For more about self-sufficiency approach:

https://brainly.com/question/31443360

#SPJ11

All of the following are tangible resources EXCEPT:A. production equipmentB. a firm's reputationC. distribution centersD. a firm's headquarters building

Answers

All of the following are tangible resources EXCEPT a firm's reputation. The correct option is (b).Tangible resources are physical assets that a company owns, such as buildings, equipment, and distribution centers.


A. Production equipment is a tangible resource, as it refers to the physical machinery and tools used to manufacture products or provide services.
B. A firm's reputation is NOT a tangible resource, as it represents the public perception of the company and cannot be physically touched or seen. It is considered an intangible resource.


C. Distribution centers are tangible resources because they are physical locations where products are stored, packaged, and shipped to customers.
D. A firm's headquarters building is a tangible resource, as it is the physical structure where a company's top management and administrative staff work.

To know more about tangible resources click here

brainly.com/question/14806916

#SPJ11

which one of the following statements is true? question 6 options: if the materials price variance is unfavorable, then the materials quantity variance must also be unfavorable. if the materials price variance is unfavorable, then the materials quantity variance must be favorable. price and quantity variances move in the same direction. if one is favorable, the others will be as well. there is no correlation of favorable or unfavorable for price and quantity variances.

Answers

The statement "if the materials price variance is unfavorable, then the materials quantity variance must also be unfavorable" is not necessarily true. Price and quantity variances are two separate factors and can move in different directions.

It is possible to have an unfavorable materials price variance but a favorable materials quantity variance, or vice versa. Therefore, option 2 is not true. Option 3 is also incorrect because price and quantity variances do not always move in the same direction. Option 4 is not always true either, as variances can be independent of each other. The correct answer is option 5: there is no correlation of favorable or unfavorable for price and quantity variances.

To learn more about variance click the link below:

brainly.com/question/31355865

#SPJ11

A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheat bread(B) with raw wheat (W). The production functions are:
Cereal: C = 28WC – 1.5WC2
Bread: B = 65WB – 2WB2
Constraint: WC + WB = 4144
Profit is $1.00 per box of cereal and $0.50 per pack of wheat bread. There are 4,144 units of raw wheat available. How much wheat should go to the cereal (WC)?

Answers

To maximize profit, 16.25 units of raw wheat should go to the cereal (WC).

To find the amount of wheat that should go to cereal (WC) to maximize profit, we will use the given production functions, constraint, and profit per box/pack.

The steps are as follows:

1. Write the profit function:

Profit = $1.00 * C + $0.50 * B

2. Substitute the production functions into the profit function:

Profit = $1.00 * (28WC - 1.5WC^2) + $0.50 * (65WB - 2WB^2)

3. Use the constraint WC + WB = 4144 to eliminate one variable. We will solve for WB:

WB = 4144 - WC

4. Substitute WB into the profit function:

Profit = $1.00 * (28WC - 1.5WC^2) + $0.50 * (65(4144 - WC) - 2(4144 - WC)^2)

5. Simplify the profit function and find its derivative with respect to WC:

d(Profit)/d(WC) = 32.5 - 6WC + 4WC

6. Set the derivative equal to zero and solve for WC:

32.5 - 6WC + 4WC = 0

-2WC = -32.5

WC = 16.25

Therefore, 16.25 units of wheat should go to the cereal (WC) to maximize profit.

Learn more about Profit:

https://brainly.com/question/23706629

#SPJ11

If the actual overnight rate is higher than the Bank of Canada's target for the overnight rate, the Bank of Canada will O decrease commercial bank reserves O increase reserves of commercial banks O increase the interest rate paid to bunk on thicit reserves held with the Bank of Canada O sell government securities

Answers

If the actual overnight rate is higher than the Bank of Canada's target for the overnight rate, the Bank of Canada will take actions to bring the rate back in line with its target. In this case, the Bank of Canada will increase reserves of commercial banks.

1. When the actual overnight rate is higher than the target, it indicates that there is a shortage of liquidity in the financial system, making it more expensive for banks to borrow from each other.

2. To address this issue, the Bank of Canada will increase reserves of commercial banks by injecting liquidity into the system. This is typically done through the purchase of government securities in a process called open market operations.

3. By purchasing government securities, the Bank of Canada provides additional funds to the commercial banks, thereby increasing their reserves. With increased reserves, banks have more funds available to lend to each other.

4. As banks now have more funds available, the competition to lend these funds to other banks will increase. This increased competition will result in a decrease in the overnight rate, moving it closer to the Bank of Canada's target.

for more such questions on commercial banks

https://brainly.com/question/27916421

#SPJ11

Other Questions
Question 9The reason that the ozone layer is so important is because it:a. provides an element needed for respiration of plantsb. it protects life forms from solar ultraviolet radiationc. it helps in retaining a constant earth temperatured. it helps diffuse carbon dioxide in the atmosphere What does excerpt reveal about nick True/false: GPU kernels that encounter an error terminate the program with an error message. true or false women's facial and body communications tend to indicate that they are emotionally reserved and in control. Solve x2=x . A. all values of x B. all values of x l x 1 C. all values of x l x 0 D. all values of x l x 0 During the last Polar Vortex I was stuck late at school in another boring meeting. At 7:00 pm I finally got to my car, finding, disastrously, that it wouldnt start. I was forced to take the bus home, and knew I would be waiting a while to transfer at Clark St. Luckily, at My High School, there was a closet full of chemicals. What could I have done in order to warm up my hands? Why would this work? This Is A Question, Not a Real Life Scenario Define Numerical Aperture (NA):What are the two light capturing lenses in microscope?What is the purpose of the condenser? While skydiving, a parachutist whose weight is 700N opens her parachute and experiences a force due to air resistance equal to 1000N. The net force on the parachutist is We Pay Insurance Co. will pay you $1,300 each quarter for 21 years. You want to earn a minimum interest rate of .93 percent per quarter. What is the most you are willing to pay today for these payments? Question 23 options: $71,774.46 $75,552.06 A database is used instead of a spreadsheet when ________. Lists of data involve a single theme Structures of data lists are simpleLists involve data with multiple themes Users do not want to store all data in one placeUsers have a small amount of data to store What does T pair with What happens when NADH and FADH2 drop off e- at ETC? What should you do when a child victim has a pulse of more than 60 per minute but is not breathing? Im a titration of a weak acid with a strong base, what is the pH of the solution at the equivalent point?A >7B 7C US oil supply is given by P = 29+8Q, where P and Q are oil price and oil quantity (in barrel) supplied. How much Producer Surplus increases if the oil price per barrel in the world market increases from $65 to $89? At the present time, ______ percent of the total funding for public K-12 education comes from the federal government. The variable in the method declaration that accept the values from the actual parameters are _____ parameters. Paternalism, measured by a manager's involvement in both personal and off-the-job problems of subordinates is very important in _____.A. the United StatesB. AustraliaC. JapanD. France THE PATIENT IS THE PRIMARY USER AND MANAGES AND SHARES THE IFORMATION IN A PERSONAL HEALTH RECORD. How much saliva do we produce each day on average?