Questions
Monetary Policy 1. If the economy is operating below full employment, should the Federal Reserve engage...

Monetary Policy

1. If the economy is operating below full employment, should the Federal Reserve engage in expansionary or contractionary monetary policy to bring the economy back to full employment?

2. When the economy has a positive GDP gap, then

potential output exceeds actual output

potential output equals actual output

potential output is less than actual output

There is not enough information.

3. If the economy has a positive GDP gap, should the Federal Reserve engage in expansionary or contractionary monetary policy?

4. Monetary policy falls under the watchful eye of the _______________.

5. There are ____ district Federal Reserve Banks.

6. _________ is the chairperson of the Federal Reserve Board of Governors. (You need to know his full name. You need to be able to spell it correctly.)

7. True or False . An increase in the reserve requirement ratio causes the money multiplier to increase.  

8. Think about the loanable funds market. If the Federal Reserve engages in an open market purchase of government, the supply curve  and the real interest rate .

9. Think about the loanable funds market. If the Federal Reserve engages in an open market sale of government, the supply curve  and the real interest rate .

10. When the Federal Reserve engages in an open market sale, this pushes the interest rate  and the aggregate demand curve shifts to the .

11. The Federal Reserve is attempting to increase the aggregate demand curve to fight a recession. Which of the following would accomplish their goal? Check all that apply.

Increase the reserve requirement.

Decrease the reserve requirement.

Sell government securities.

Buy government securities.

Increase income tax rates

decrease income tax rates

12. The Federal Reserve is attempting to decrease the aggregate demand curve to fight inflation. Which of the following would accomplish their goal? Check all that apply.

Increase the reserve requirement.

Decrease the reserve requirement.

Sell government securities.

Buy government securities.

increase income tax rates

decrease income tax rates

13. Assume that the bank currently has excess reserves of zero, and the required reserve ratio is 10%.  If the Fed buys $150 million, the amount of new loans that the bank can make initially increases by _______ million. Be exact.

14. True or False. If the economy is currently operating at potential GDP, an open market purchase of government securities by the Federal Reserve Board will put upward pressure on prices.

15. Assume that the bank currently has excess reserves of zero, and the required reserve ratio is 20%.  If the Fed sells $120 million of government securities to JeffCo Bank, the amount of loans that the bank can make decreases initially  by _______ million. Be exact.  

16. Use the Taylor Rule to find the federal funds rate (FFR).

Assume that the Fed has a target inflation rate of 2% and a target GDP growth rate of 3%. What FFR should they set if the current inflation rate is 2% and GDP is currently growing at 3%?  

Answer: _____%

17. Use the Taylor Rule to find the federal funds rate (FFR).

Assume that the Fed has a target inflation rate of 2% and a target GDP growth rate of 3%. What FFR should they set if the current inflation rate is 2% and GDP is currently growing at 1%?  

Answer: _____%

18. Use the Taylor Rule to find the federal funds rate (FFR).

Assume that the Fed has a target inflation rate of 2% and a target GDP growth rate of 3%. What FFR should they set if the current inflation rate is 5% and GDP is currently growing at 1%?   This is an example of stagflation where the economy experiences inflation with slow growth.

Answer: _____%

19. When the Fed used quantitative easing to combat the Great Recession, they purchased assets from bank balance sheets. What did the Fed think that banks would do in response? Explain why you believe this outcome would occur.

In: Economics

Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells...

Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.40 Direct labor $ 4.40 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead $ 5.40 Fixed selling expense $ 3.90 Fixed administrative expense $ 2.90 Sales commissions $ 1.40 Variable administrative expense $ 0.90 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 15,500 units? b. What is the total indirect manufacturing cost incurred to make 15,500 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 15,500 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $44,950 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation. a. When the company sells 15,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 15,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

In: Accounting

1. Discuss the tools that you have learned for analyzing financial statements. Be sure to discuss...

1. Discuss the tools that you have learned for analyzing financial statements. Be sure to discuss what information is found on the Income statement and Balance sheet, and how this information can be used to determine the financial health of a company.

2. You have a friend who tells you that they are a conservative investor. They would like your advice on choosing 2 stocks to invest in. What 2 stocks would you recommend and why? Be sure to discuss risk, the Expected return for the portfolio, and how that compares with the actual returns.

In: Finance

1)Throughout much of the Twentieth Century and especially during the Cold War, Americans developed a deep...

1)Throughout much of the Twentieth Century and especially during the Cold War, Americans developed a deep fear of communism. But why communism? What is it? Was America's fear of communism the result of an accurate understanding of Soviet communism?

In: Economics

Review prisoners dilemma and comment on lessons learned.

Review prisoners dilemma and comment on lessons learned.

In: Economics

Many global companies have evolved to or are evolving to, a ‘stateless corporation’.  The US and most...

Many global companies have evolved to or are evolving to, a ‘stateless corporation’.  The US and most OECD countries have legal authority to tax a domiciled corporation on its worldwide revenue.  However, as of 2019, most countries tax these corporations based on territorial tax (revenue within that country's borders).  However, the US continues to tax these corporations based on global revenues.  Is this a good choice for the US?  Why or why not?.

In: Economics

Bonita Corp. has 150,240 shares of common stock outstanding. In 2017, the company reports income from...

Bonita Corp. has 150,240 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,400. Additional transactions not considered in the $1,210,400 are as follows.

1. In 2017, Bonita Corp. sold equipment for $38,300. The machine had originally cost $83,600 and had accumulated depreciation of $31,900. The gain or loss is considered non-recurring.
2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $191,900 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $90,100 before taxes; the loss from disposal of the subsidiary was $101,800 before taxes.
3. An internal audit discovered that amortization of intangible assets was understated by $38,400 (net of tax) in a prior period. The amount was charged against retained earnings.
4. The company had a non-recurring gain of $125,400 on the condemnation of some of its property (included in the $1,210,400).


Analyze the above information and prepare an income statement for the year 2017, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 38% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.)

In: Accounting

1. What is the opportunity cost of holding cash? To answer the question, you should think...

1. What is the opportunity cost of holding cash? To answer the question, you should think of others ways to hold your money other than cash.

2.Most of us occasionally engage in barter. For example, I agree to bake a cake for a neighbor who gives me fresh tomatoes from her garden. If it is common, why isn't it the primary means of exchange?

3. Thinking about the examples of commodity monies , which do you think was the most practical? Why?

In: Economics

identify the six supply chain factors and elaborate how a company with a centralized plant can...

identify the six supply chain factors and elaborate how a company with a centralized plant can operate a responsive supply chain?

In: Operations Management

which group cannot file a petition with the us commerce department and ITC to initiate the...

which group cannot file a petition with the us commerce department and ITC to initiate the AD process?

In: Economics

Discuss an issue or point for using and creating Service-Level Requirement (SLR) and service level agreement...

Discuss an issue or point for using and creating Service-Level Requirement (SLR) and service level agreement (SLA)

In: Computer Science

Please write an essay for the following information for the Freeze fracture technique (may use online...

Please write an essay for the following information for the Freeze fracture technique (may use online sources):

Purpose - Brief description (one to two sentences) of the purpose of this method (ie. what is the general purpose for this technique? When would it be used?)

Background – This section will include a description of the concepts and theories that are needed to understand this technique.

Method description – this section will include an overview of the steps involved in carrying out the technique. This does not need to be as detailed as you would expect to find in a publication, but rather should include more of an outline of the experimental flow.

Advantages/limitations of the technique – This section should include at least 1 advantage and 1 limitation of the technique compared to other techniques.

In: Biology

Create loanable funds market graphs for each the following (be sure to note what is happening...

Create loanable funds market graphs for each the following (be sure to note what is happening on the x and y axis). You need to create a separate graphical answer,

  1. If households start to fear that banks are unsafe.
  2. If the government spends more and runs greater deficits.
  3. Television newscasters convince most people that the end of the world will occur in 2018.
  4. Breakthrough advances in pharmaceuticals increase life expectancy to 100 years.

In: Economics

(a) Explain the major differences between producer gas and water gas. (b) Explain why the presence...

(a) Explain the major differences between producer gas and water gas.

(b) Explain why the presence of even a small amount of H2 can substantially expedite the reaction of CO-O2 mixture by using chemical kinetics analysis.

In: Other

Discuss what you know on the lean thinking,system and types of waste with giving examples ....

Discuss what you know on the lean thinking,system and types of waste with giving examples .

** The answer should not be less than 10 lines**

Thank you..

In: Operations Management