If the U.S. economy is producing at a level that is substantially less than potential GDP and the government's budget deficits are increasing aggregate demand, then ____________________________ is not much of a danger.

Answers

Answer 1

Answer:

an inflationary increase in the price level.

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country.

In order to boost economic growth, a monetary policy is implemented to increase money supply (liquidity). Also, it is used to prevent inflation by reducing money supply.

An inflationary gap, also referred to as an expansionary gap in economics, is typically used for measuring the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate. Consequently, this situation causes the price of goods and services to go up with a low income level among the people living in the country.

A budget deficit is the amount by which spending exceeds income.

All other factors held constant or all things being equal (ceteris paribus), an increase in government's budget deficit drives the interest rate up.

Generally, when there's a deficit in government budget, they resort to issuing more bonds or borrowing money from creditors. These creditors are likely to be sceptical about the government's ability to repay the debt and as such would increase the interest rate.

Hence, an inflationary increase in the price level of goods and services is not much of a danger if the U.S. economy is producing at a level that is substantially less than potential gross domestic product (GDP) and the aggregate demand is being increased by government's budget deficits.


Related Questions

Operating Leverage
Haywood Co. reports the following data:
Sales $6,160,000
Variable costs (4,620,000)
Contribution margin $1,540,000
Fixed costs (440,000)
Operating income $1,100,000
Determine Haywood Co.’s operating leverage. Round your answer to one decimal place.

Answers

Answer:

Degree of operating leverage= 1.4

Explanation:

Giving the following information:

Sales $6,160,000

Variable costs (4,620,000)

Contribution margin $1,540,000

Fixed costs (440,000)

Operating income $1,100,000

To calculate the degree of operating leverage, we need to use the following formula:

degree of operating leverage= Total contribution margin / operating income

degree of operating leverage= 1,540,000 / 1,100,000

degree of operating leverage= 1.4

Economic efficiency requires that a natural monopoly's price be: Select one: A. equal to marginal cost where it intersects the demand curve B. equal to the lowest price the firm can charge and still make a normal profit C. equal to average variable cost where it intersects the demand curve D. equal to average total cost where it intersects the demand curve.

Answers

Answer: A. equal to marginal cost where it intersects the demand curve

Explanation:

In a pure competition, the market is efficient because it balances demand and supply and gives an equilibrium price that takes both of them into account.

In this market, the price is equal to the marginal revenue of a firm and the profit maximizing level of production is where the marginal revenue intersects the marginal cost.

The efficient level is therefore where price equals marginal cost. The same goes for a natural monopoly. If economic efficiency is to be achieved, the natural monopoly's price must equal the marginal cost at the equilibrium price.

A 12-month insurance policy was purchased on Dec. 1 for $4,800 and the Prepaid insurance account was initially increased for the payment. The required adjusting journal entry on December 31 includes a: (Check all that apply.)

Answers

Answer:

Credit to Prepaid insurance for $400 and Debit to Insurance expense for $400

Explanation:

The journal entry is given below:

Insurance expense ($4800 × 1 ÷ 12) $400  

       Prepaid Insurance  $400

(To record insurance expense)

Here the insurance expense is debited as it increased the expense and credited the prepaid insurance as it decreased the assets

Prepaid insurance credit for $400 and Insurance expense debit for $400.

Given that,

Insurance policy expense is $4,800.Insurance policy period is of 12 months.

Working note,

Amount of insurance expense for 1 month = [$4,800 [tex]\times[/tex] (1 ÷ 12) ]

= $400

So, journal entry for the data are as follows,

Insurance expense A/c Dr. $400  

     To, Prepaid Insurance A/c  $400

    (Being insurance expense is recorded)

Learn more: https://brainly.com/question/4557688

Match each example to the appropriate term.

a. Trees used to make paper
1. Human capital
2. Technological knowledge
3. Physical capital

b. A printing press used to make books.
1. Human capital
2. Technological knowledge
3. Physical capital

c. A method of organizing workers to increase production per hour.
1. Human capital
2. Technological knowledge
3. Physical capital

d. The skills workers learn during a training session.
1. Human capital
2. Technological knowledge
3. Physical capital

Answers

Answer:

a equals 3

b equals 3

c equals 1

d equals 2

On January 1, 2021, Doyle Corporation had 140,000 shares of its $5 par value common stock outstanding. On December 1, when the market price of the stock was $15, the corporation declared a 40% stock dividend to be issued to stockholders of record on December 16, 2021. What was the impact of the 40% stock dividend on the balance of the retained earnings account

Answers

Answer: Retained earnings would reduce by the $840,000 dividend.

Explanation:

Stock dividends to the shareholders is to be paid from the retained earnings of the company as it represents profits that the shareholders get because they are owners in the company.

Retained earnings spent = Number of shares * Market price * Stock dividend

= 140,000 * 15 * 40%

= $840,000

Retained earnings would reduce by the $840,000 dividend.

While preparing your risk responses, you identify additional risks. What should you do? Add reserves to the project to accommodate the new risks and notify management. Document the risk and calculate the expected monetary value based on the probability and impact of the occurrences. Determine the risk events and the associated costs, then add the cost to the project budget as a reserve. Add 10 percent contingency to the project budget and notify the customer

Answers

Answer: Document the risk and calculate the expected monetary value based on the probability and impact of the occurrences.

Explanation:

Risk response refers to the development of strategic options to reduce the threats and enhance opportunities to the objectives of the project.

It should be noted that when new risks are identified, such risks go through the process of risk management and one needs to be able to know the risk probability and risk impact and then get to curtail them.

The year 14 interest of a bond is the face line of the bond

Answers

Answer:

yes you are correct okay with you

When a company has established separate manufacturing overhead rates for each department, it is using:_______.
a. departmental overhead rates.
b. cost distortion.
c. a plant-wide overhead rate.
d. lean thinking.

Answers

Answer:

Departmental overhead rates

Department overheard rates

Our home construction company still buys nails in 15-pound boxes but now we use an average of 3495 boxes a year. Preparing an order and receiving a shipment of nails involves a cost of $1.45 per order. Annual carrying costs are $0.7 per bag. What will be their total cost of ordering and carrying the nails

Answers

Answer:

Home Construction Company

Their total cost of ordering and carrying the nails is:

= $2,488.55.

Explanation:

a) Data and Calculations:

Cost of ordering and receiving a shipment of nails = $1.45 per order

Annual carrying costs per bag = $0.7

Annual average boxes = 3,495

EOQ = square root of (2 * 3,495 * $1.45)/$0.7

= square root of 120

Number of orders = 29 (3,495/120)

Ordering costs = $42.05 ($1.45 * 29)

Carrying costs = $2,446.50 ($0.7 * 3,495)

Total cost of ordering and carrying the nails = $2,488.55 ($42.05 + $2,446.50)

Efficiency in a market is achieved when:_______.
a. a social planner intervenes and sets the quantity of output after evaluating buyers' willingness to pay and sellers' costs.
b. the sum of producer surplus and consumer surplus is maximized.
c. all firms are producing the good at the same low cost per unit.
d. no buyer is willing to pay more than the equilibrium price for any unit of the good.

Answers

Answer:

B. The sum of producer surplus and consumer surplus is maximized.

You would like to have enough money saved to receive a $50,000 per year in perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 8%.)

Answers

Answer:

$625,000

Explanation:

Calculation to determine How much would you need to have saved in your retirement fund to achieve this goal

Using perpetuity equation

PV=C/r

Where,

C=Perpetuity after retirement

r=Annual interest rate

Let plug in the formula

PV = (50,000/0.08)

PV= $625,000

Therefore How much would you need to have saved in your retirement fund to achieve this goal will be $625,000

In many organizations, information flows much more freely within functional departments than it does across functions (i.e., throughout the entire organization). ________ represents an information system designed to overcome this tendency.

Answers

Answer:

ERP

Explanation:

Enterprise resource planning (ERP) means the software that can be used by an organization in order to manage the day to day business activities like accounting, management of risk, supply chain management, project management, etc

Also here the information could be transfer within the functional departments via the overall organization

Therefore the above should be the answer

An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to: Multiple Choice Buy since the relevant cost to make it is $48. Buy since the relevant cost to make it is $72. Buy since the relevant cost to make it is $56. Make since the relevant cost to make it is $56. Make since the relevant cost to make it is $48.

Answers

Question Completion:

Epsilon Co. can produce a unit of product for the following:

Direct material $8

Direct labor 24

Overhead 40

Total costs per unit $72

Answer:

Epsilon Co.

Epsilon should choose to:

Make since the relevant cost to make it is $56.

Explanation:

a) Data and Calculations:

Direct material           $8

Direct labor                24

Overhead                  40

Total costs per unit $72

Relevant Costs:

                                 Make              Buy

Direct material            $8

Direct labor                 24

Overhead                   24

Total costs per unit $56                $60

b) It costs Epsilon less to make the units than to buy from the outside supplier.  The relevant cost excludes the 40% of the overhead that will still be incurred by Epsilon if it buys from the supplier.  Relevantly, it costs Epsilon $56 per unit to make when compared to the unit cost of $60 to buy.  In absolute terms, it will cost Epsilon $76 ($60 + $16) to buy as against $72 to make a unit of the part.

what is the marketing?

Answers

Explanation:

the action or business of promoting and selling products or services, including market research and advertising.

Budgeted overhead for Cinnabar Industries at normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead volume variance is Group of answer choices $10,000 favorable. $11,000 favorable. $5,000 favorable. $8,000 favorable.

Answers

Answer:

Manufacturing overhead volume variance= $5,000 favorable

Explanation:

Giving the following information:

Estimated overhead allocation rate= 4 + 6= $10 per direct labor hour

Actual number of hours= 31,500

Standard hours were allowed= 32,000

To calculate the overhead volume variance, we need to use the following formula:

Manufacturing overhead volume variance= (Estimated manufacturing overhead rate*standard allocation base) - (Estimated manufacturing overhead rate* Actual amount of allocation base)

Manufacturing overhead volume variance= (10*32,000) - (10*31,500)

Manufacturing overhead volume variance= $5,000 favorable

Fruit boat company manufacturers 10 fruit themed boats per month. A navigation system is included in each boat. Fruit Boat COmpany manufacturers the navigation system in-house but is considering the possiblity of outsourcing thsi function. At present, the variable cost per unit is $300, and the fixed costs are $39,000 per month. If it outsources the naviagation system, fxed costs could be reduced by half, and the vacant facilitiescould be rented out to earn 400 per month of rental income. What is the maximum contract cost that Fruit Boat Company should pay for outsourcing?

a. any cost lower than $3900 per unit
b. any cost lower than $2325 per unit
c. any cost lower than $2225 per unit
d. any cost lower than $275 per unit

Answers

Answer:

the cost should be lower than $2,650 per unit

Explanation:

The computation of the maximum contract cost should pay for outsourcing should be

Variable cost $300

Avoidable Fixed cost per unit (19,500÷ 10) 1,950

Opportunity cost (400 ÷ 10) 400

Total 2,650

Hence, the cost should be lower than $2,650 per unit

This is the answer but the same is not provided in the given options

The total factory overhead for Norton Company is budgeted for the year at $300,000, divided into three activities: assembly, $200,000; setup, $50,000; and materials handling, $150,000. Norton manufactures two products: Product A and Product B. The activity-based usage quantities for each product by each activity are estimated as follows:
Assembly Setup Materials Handling
Product A 5,000 dlh 60,setups 25 moves
Product B 15,000 dlh 110 setups 250 moves
Total activity- 20,000 dlh 170setups 275 moves
base usage
Determine the activity rate for the set up activity.
a. $166 per setup
b. $294 per setup
c. $1,764 per setup
d. $118 per setup

Answers

Answer:

b. $294 per setup

Explanation:

The computation of the activity rate for the setup activity is given below:

Activity Rate is

= Total Activity Cost ÷ Cost Driver

Activity Rate for Setup Activity is

= $50,000 ÷ 170

= $294 per Setup

hence, the activity rate for the setup activity is $294

Therefore the option b is correct

Which of the following statements is true?

a. Overhead can be applied slowly as a job is worked on.
b. Overhead can be applied when the job is completed.
c. Overhead should be applied to any job not completed at year-end in order to properly value the work in process inventory.

Answers

Answer:

the answer should be

a. Overhead can be applied slowly as a job is worked on.

Answer:

A: overhead can be applied slowly as a job is worked on.

Explanation:

Im pretty sure i already learned that! so trust it!

hope it helps!

if its wrong report my answer!

what are the activities of Facility Management?

Answers

Answer:

Managing a facility

Explanation:

An entrepreneur purchased an existing bicycle shop that had between 13000

Answers

Answer:

Write the full question a so I can answer?

A company like Motorola might establish a goal of reducing its inventory by 50 percent over the next year. To ensure that it reaches this goal, the company could monitor its progress on a quarterly or monthly basis. If the managers at Motorola discover that there is a danger of not achieving this goal, they can take corrective action to adjust for the deficiency. This is a description of the managers' ____ function.

Answers

Answer:

stfhgocovovohdj vbb

Explanation:

sryyy

A stock has an expected return of 16.1 percent, the risk-free rate is 6.45 percent, and the market risk premium is 7.2 percent. What must the beta of this stock be

Answers

Answer:

the beta of the stock is 1.34

Explanation:

The calculation of the beta of the stock should be

As we know that

Expected rate of return = Risk free rate + beta × market risk premium

16.1 = 6.45% + beta × 7.2%

16.1% - 6.45% = beta × 7.2%

9.65% = beta × 7.2%

So, the beta should be

= 9.65% ÷ 7.2%

= 1.34

Hence, the beta of the stock is 1.34

CONCILIACIONES BANCARIAS

Answers

Answer:

ehejejeuywnfwwjwjwhwjegegjshshstehshstejeheteyejuw7yo was a member in its first two seasons of its own and the first team in its history to win the world series 65in 2of 2in 3733333inches the world cup is in its second season as a team that

Which of the following statements about the monetary aggregates is true?

a. The growth rates of M1 and M2 always track each other closely.
b. M1 is greater than M2.
c. When the growth rate of M2 increases, the growth rate of M1 must also increase.
d. When you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same.

Given​ that, in billions of U.S.​ dollars, we have in​ currency, in demand​ deposits, in​ traveler's checks, in savings​ deposits, and in other checkable deposits. The total M1 amount in this economy is ​$__________

Answers

Answer: D. When you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same.

Explanation:

1. Since M2 = M1 + Saving deposit + Time deposits + Money Market deposit of individuals, then from the options given, the true statement about the monetary aggregate is that when you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same. Therefore, the fire option is D.

2. Your second question isn't well written but let's assume some figures in order to solve the question.

Let's say,

Currency = $863.2 billion

Demand deposit = $573.5 billion

Traveler's cheque = $3.8 billion

Savings deposit = $5237.8

Other checkable deposit = $319

Therefore, the total M1 amount in this economy will be:

M1 = Currency + Demand deposit + Travelers check + Other checkable deposits

= 863.2 + 573.5 + 3.8 + 319

= $1759.5 billion

Increased demand for bonds tends to reduce the yield from holding bonds.

Answers

Answer:

Bonds have an inverse relationship to interest rates. When the cost of borrowing money rises (when interest rates rise), bond prices usually fall, and vice-versa.

At first glance, the negative correlation between interest rates and bond prices seems somewhat illogical. However, upon closer examination, it actually begins to make good sense.

16. List five benefits of therapeutic massage

Answers

Stress relief, anxiety reduction, improved sleep quality, reduced muscle pain, muscle soreness, range of motion-flexibility, helps with immunity and inflammation.

Áp dụng một trong các phương pháp quản trị chất lượng để phân tích thực trạng công tác quản trị chất lượng tại một tổ chức/doanh nghiệp cụ thể.

Answers

Answer:

Bench marking and Continuous improvement.

Explanation:

Quality management is essential for any business. It is necessary to inspect quality of goods before they are sold to customers so that faulty products are identified at an earlier stage. There are various quality management techniques which are used by businesses. Kaizen, Six sigma, and zero defect programs are various total quality management techniques. There should be strict inspection of finished goods before they are dispatched to the customers.

he preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. b. allows managers to buy additional shares below the current market price. c. protects the current shareholders against a dilution of their ownership interests. d. is included in every corporate charter.

Answers

Answer:

c. protects the current shareholders against a dilution of their ownership interests.

Explanation:

In the case when the preemptive right should be significant for the shareholders so it basically protect the present shareholders that are opposed to the dilution with respective to the ownership interest

Therefore the option c is correct

And, the other options seems wrong

Determine the tax basis of the business asset acquired in each of the following cases:
Required:
a. Firm L paid $5,950 cash plus $416 sales tax plus a $500 installation charge for a satellite dish.
b. TTP Inc. acquired inventory in exchange for 800 shares of TTP common stock listed on Nasdaq at $212 per share on the date of exchange.
c. Firm Q acquired machinery in exchange for architectural drawings rendered by Firm’s Q’s junior partner. The partner spent 20 hours on the drawings, and his hourly billing rate is $350.
d. Company C purchased equipment by paying $2,000 cash at date of purchase and financing the $18,000 balance of the price under a three-year deferred payment plan.

Answers

Answer:

a. A Cost basis is best:

= Every cost necessary to set up and use the satellite dish:

= Purchase price + Sales tax  + Installation tax

= 5,950 + 416 + 500

= $6,866

b. Here the best basis to use is the Fair Market Value of the stock that was exchanged for the inventory:

= (800 * 212)

= $169,600

c. Use Fair Market Value of services rendered by junior partner:

= 20 * 350

= $7,000

d. Use the total payment requirement:

= Cost at purchase date + Balance to be paid

= 2,000 + 18,000

= $20,000

Suppose Gulf Shipping Company has the following results related to cash flows for 2019:
Net Income of $7,800,000
Decrease in Accounts Payable of $300,000
Increase in Accounts Receivable of $800,000
Depreciation of $1,200,000
Increase in Inventory of $900,000
Other Adjustments from Operating Activities of $700,000
Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands.
What is the Net Cash Flow from Operating Activities?
Note: Financial results are provided in dollars but the income statement units are thousands of dollars.
Please specify your answer in the same units as the statement of cash flows (i.e., enter the number from your completed statement of cash flows).

Answers

Answer:

$7,700

Explanation:

                 Cash Flow from Operating Activities

Particulars                                                                Amount

Net Income                                                               $7,800

Add: Depreciation                                                    $1,200

Add: Other adjustments                                           $700  

Cash flow before working capital adjustments   $9,700

Less: Decrease in Accounts payable                      ($300)

Increase in Accounts receivable                             ($800)  

Increase in Inventory                                                ($900)

Net Cash flow from Operating activities               $7,700

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