Expansionary monetary policy is more effective in an open economy because:.

Answers

Answer 1

In an open economy, expansionary fiscal policy  increases in government spending can raise interest rates, which raises the dollar's value and pushes out net exports  is the reason of effectiveness Expansionary monetary policy.

What is Expansionary monetary policy?

Expansionary policy, often known as loose policy, is a macroeconomic policy aimed at boosting economic growth.

Monetary or fiscal policy can both be used to expand the economy or a combination of the two.

It is part of Keynesian economics' overarching policy prescription for reducing the negative effects of economic cycles during slowdowns and recessions.

Thus, increases in government spending can raise interest rates is the reason of effectiveness Expansionary monetary policy.

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Related Questions

A firm offloads some of its production costs to 3rd parties. This would contribute to market failure because

Answers

The activity of the firm contributes to market failure because it leads to negative externlity.

What is negative externlity?

Negative externality occurs when the costs of economic activities is greater than the benefits to third parties not involved in production is greater than the benefits.  An example of an activity that generates negative externality is pollution.

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Imagine that a firm sends out a message in the form of a print advertisement for a product. Which element is most likely to contribute to how receivers decode the message differently

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The element that is most likely to contribute to how receivers decode the message differently is whether the receiver is a user of the product or not.

What is advertisement?

It should be noted that advertisement simply means the way of creating awareness regarding a product.

In this case, the element that is most likely to contribute to how receivers decode the message differently is whether the receiver is a user of the product or not.

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What is one counter-argument to the premise that the wealth gap is a serious problem which needs to be addressed? the lower classes have the opportunity to invest. poor people can easily move into the middle class. investments by the upper class create lower-class jobs. buying power sharply increases for the working class.

Answers

The investments by the upper class that creates lower-class jobs is the counter-argument on wealth gap that needs to be addressed.

What is a wealth gap?

This refers to the gap that classifies the group of people based on their earned income and wealth.

The statement that "Investments by the upper class create lower-class jobs" need to be addressed because it is a true statement about the condition of every economy.

Therefore, the Option C is correct.

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Answer:

C

Explanation:

As the marketing director for a tablet computer manufacturer, you're aware that some consumers still need a lot of help and information before making a decision to buy a tablet, while others are familiar with tablet computers and know exactly what they're looking for in a product. With this objective in mind, which distribution channel makes the most sense for marketing your products?

Answers

The dual distribution channel is the channel that makes most sense for marketing these products.

What is a dual distribution channel?

This is a channel that involves 2 approaches simultaneously in order to get one's products to end-users.

Usualy, one approach is to use marketing intermediaries and the other is to sell directly to end-users.

Therefore, the dual distribution channel is the channel that makes most sense for marketing these products.

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Sid's Video Store will pay an annual dividend of $2.15 next year. The company just announced that subsequent future dividends will be increasing by 1.5 percent annually. How much are you willing to pay for one share of this stock if your required return is 14 percent

Answers

The amount of money that I would be willing to pay for one share of the stock of Sid's Video Store is $17.20.

What is the value of the stock?

The amount I would be willing to pay for the stock would be based on the value of the stock.

Value of the stock = dividend that would be paid next year / ( required return - growth rate)

$2.15 / (14% - 1.5%)

$2.15 / 12.5% = $17.20

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Firms are more likely to effectively leverage their technologies in new markets if they identify new applications of the technology by identifying the ________ mode to generate ________ from ________ markets.

Answers

Firms are more likely to effectively leverage their technologies in new markets if they identify new applications of the technology by identifying the best mode to generate profits from new markets. best, profits, new the sentence.

What are Firms?

Generally, Firms are simply defined as the business as an essential component of any economic system in which individuals satisfy needs via the division of labor and the trade of products and services.

In conclusion, Firms are business-oriented organizations.

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Lucy will open a checking account and 3 savings accounts for different purposes (emergency fund, gift fund, and education fund). which of the following items should not be among her main considerations in selecting these accounts? a. the account recommended for somebody with different needs. b. the amount of interest to be paid on deposits. c. any advantages of having all the accounts at the same bank. d. fees for having multiple savings accounts.

Answers

The item that should not be among Lucy's main considerations in selecting these accounts are that the account recommended for somebody with different needs.

What is checking account?

A transaction account is a deposit account kept at a bank or other financial institution. It is also known as a checking account, checking account, current account, request deposit account, or shared draft account at credit unions.

In the above situation, Lucy will have to pay the amount of interest to be on deposits, and eligible to any advantages of having all the accounts at the same bank.

Lucy will also bear the fees for having multiple savings accounts, as having a multiple accounts increases the fees of all the accounts.

The account cannot be opened for the need of somebody, it is opened for the banking transactions and for depositing the money.

Therefore, option A is correct.

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Answer:

A: The account recommended for somebody with different needs.

Explanation:

edge

Khadimally, Incorporated, expects sales of $763,500 next year. The net profit margin is 5.3 percent and the firm has a dividend payout ratio of 18 percent. What is the projected increase in retained earnings

Answers

Based on the expected sales, net profit margin, and dividend payout ratio, the projected increase in retained earnings for Khadimally Inc, is $33,181.71.

What is the projected increase in retained earnings?

First find the expected profit:

= Sales x Net profit margin

= 763,500 x 5.3%

= $40,465.50

The projected increase is:

= 40,465.50 x (1 - 18%)

= $33,181.71

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During the 1880s, Standard Oil owned or controlled nearly all facets of oil refining. When a company has such control over the marketplace, what term best describes it

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When a company owns and controls the marketplace, the term that best describes it is a Monopoly.

What is a monopoly?

A monopoly is a market situation where there is little to no competition.

The major characteristics of a monopoly are:

Profit maximizationPrice fixingHigh entry barriersSingle sellerPrice discrimination.

Thus, when a company owns and controls the marketplace, the term that best describes it is a Monopoly.

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What is financial literacy and why is it important.

Answers

Answer:

Financial literacy is a set of skills and knowledge that allows one to make effective decisions with their financial resources.

Explanation:

Why is it important? Well, being financially literate ensures financial stability and security. It also allows you to have a variety of different financial skills; such as creating a budget, understanding how credit works, being able to save for retirement, and becoming wiser with how to manage your money.

Hope this helps! Have an amazing day! :D

Which of the following actions will help limit the access to your network?


Enable the network to look for active devices


Disable firewall guards


Turn off the wireless connection when it is not in use

Answers

Turn off wireless connection when it is not in use (option 3/c)

You decide to change your business processes in order to implement SAP without making any changes to it. This is an example of the ________ approach to ERP implementation

Answers

Vanilla approach to ERP implementation is when one change business processes in order to implement SAP.

What is Vanilla ERP implementation?

Vanilla ERP implementation serves as the implementation of standard software modules for core business processes.

This usually help toprovide breadth of integration and depth of functionality across the business.

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Which of the following ratios indicates how efficiently a company uses it assets to generate sales? Return on assets Asset turnover Sustainability Profit margin

Answers

The financial ratio that indicate how efficiently a company uses its asset to generate sales is the Return on assets.

What are profitability ratio?

Profitability ratio are financial ratios used to determine how efficiently a company uses it assets to generate sales. Profitability ratios include:

Gross profit margin Operating profit margin Pretax Margin Net profit Margin Return on asset Return on equity

Asset turnover is an example of activity ratio. Activity ratios determines the efficiency of performing daily task of a firm.

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Answer:Just took the quiz. It’s asset turnover

The Hanson Group is deciding if the company should use personal direct selling as a method to sell products. What should the company keep in mind with regards to personal direct selling

Answers

The company must keep in mind in relation to personal direct selling is that this strategy must be used in conjunction with advertising and marketing strategies.

What is personal direct selling?

Corresponds to a sales technique where a salesperson will communicate directly with a potential customer to sell a particular product or service, using persuasion and marketing tolls for this purpose.

Therefore, when using the personal selling strategy, the company must also develop marketing and advertising strategies for its products and services, using the correct techniques for persuasion and generating desire for purchase.

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Safety and self-actualization are examples of
a. credibility appeals
b. emotional appeals
C.
selective appeals
d.
logical appeals

Answers

Answer:

b

Explanation:

An emotional appeal is a method of persuasion that is designed to create an emotional response. Emotion -phatos in Greek, is one of the three modes of persuasion identified by the well-known philosopher Aristotle. Emotional appeals are meant to manipulate emotions in an audience.

Emotional appeals are used by means of communication. For instance, when a news TV show relates a new on the rise of crime in a given state it causes insecurity in the audience or when an ad on social media prompts information on new technology it creates the need for updating our knowledge so the audience understands what that is about

Answer:

b. emotional appeals

Explanation:

took the test :)

During the decline stage of the product life cycle, Blank______ who have not yet tried the product or service will be entering the market for the first time.

Answers

During the decline stage of the product life cycle, laggards who have not yet tried the product or service will be entering the market for the first time.

What is product life cycle?

A product life cycle  can be defined as the time in which a customers was aware of a product in the market to the time when the product was no longer available in the market.

At the decline stage a who was not aware of the existance of a product  is lag behind because the person is just entering the market for the first time

Therefore during the decline stage of the product life cycle, laggards will be entering the market for the first time.

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Select the correct answer.
Sheryl is a homemaker living with her husband and her two sons in Texas. Her sons are fond of playing with lawn darts. However, one day, while
playing with lawn darts, the younger son accidently steps on a dart and injures his foot. Sheryl then finds out that lawn darts are banned in the
US. Which federal agency do you think may have banned the sale of sharp, metal lawn darts?
OA
Securities and Exchange Commission
B.
Environmental Protection Agency
OC Food and Drug Administration
OD.
Reset
Next
Consumer Product Safety Commission

Answers

Answer:

The answer is Securities and Exchange Commission.

What did the International Monetary Fund (IMF) require in exchange for providing funds to heavily indebted customers in the 1980s and 1990s?

Answers

The adoption of a new fiscal ways by the customers was the requirement made in exchange for providing funds to heavily indebted people in the late 1900s.

What role did the IMF played in 1980s?

During the debt crisis in 1980s, the International Monetary Fund played a major role as a rescuer for the people affected.

The international banks in the IMF kept heavily indebted customers solvent but one a condition.

In conclusion, the condition was that they had to adopt of a new fiscal ways to have access to the relief funds.

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If the capital stock ________ while the supply of labor ________, it is likely that the productivity of labor will fall.

Answers

If the capital stock fixed while the supply of labor increases, it is likely that the productivity of labor will fall.

What is Labor productivity?

Labor productivity is use to measure the output of a labour based on hourly basis.

Labor productivity is usually determined by the amount of Capital that is investment. This include technological and human capital.

Therefore, If the capital stock fixed while the supply of labor increases, it is likely that the productivity of labor will fall.

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Which are types of income tax that people pay? Check all that apply.

federal
local
Oprogressive
state
sales
flat

Answers

Answer:

federal

local

state

sales

please mark me as brainliest

The types of income tax that people pay are

federal

local

state

sales

What is taxes?

The term tax refers to that, compulsory financial charges are there which are to be paid by the taxpayers to the government for every department different taxes are liable to the taxpayers to the government there are many other taxes are bee there like road tax, etc.

According to the citizens are the taxpayers, there are different types of taxpayers have been there are like state tax, local tax, sales tax, and the different types of taxes have been there in it by paying the taxes the government runs.

Therefore, these are the types have been their taxes that have been paid to the government.

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Suppose Ike’s Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is

Answers

The short-run average total cost of Ike's Bikes of producing 100 bikes is $360.

What is the short-run average total cost ?

The short-run is a production period where some of the factors used in the production process are fixed and others are variable. The  short-run average total cost is the total cost divided by total output. Total cost is the sum of fixed cost and variable cost.

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Read the following question/answer from a standard learning style inventory and determine which learning style the selected response reflects.

When I share a story, I am likely to...talk with my hands.


Physical


Visual


Auditory

Answers

i think visual, because sometimes people move their hands around when they talk to help paint a picture or show/explain what their talking about.

When the Fed buys securities from the public, banks' reserves ________ and the quantity of money ________.

Answers

When Fed buys securities from the public, banks' reserves increases and the quantity of money reduces in supply.

What are Securities?

Securities simply put are assets that has monetary values like bonds, stocks and they can be traded.

In recent times, people enjoy the digital form of money/securities like cyptocurrencies.

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A person who works as a sales representative for a manufacturer or wholesaler and gets paid a commission on any sales is classified a(n):

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A person who works as a sales representative for a manufacturer or wholesaler and gets paid a commission on any sales is classified an agent.

Who is an agent?

This is a person that is signed on to work on behalf of another person. This may be someone who helps to make decisions on behalf of the person that they represent.

Also a person that does business on behalf of another for the sake of commissions is an agent.

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If real GDP grows by 3 percent, the velocity of circulation does not change, and the quantity of money grows by 3 percent, then in the long run the inflation rate is

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Based on the real GDP growth rate, the velocity of circulation, and the quantity of money, the long run inflation rate will be 0%.

What is the long-run inflation rate?

This can be found using the Quantity theory of money:
Money supply x Velocity of circulation = Price level x Real GDP

Can also be written as:

% change in M + % change in V = % change in P + % change in Y

Solving gives:

3% + 0 = P + 3%

P = 3% - 3%

= 0%

The price level is to increase by 0% which means that inflation is 0%.

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The board of directors had an important role in luckin coffee, but it claimed to be unaware of any problems. If true, this is an example of.

Answers

An example of an information asymmetry is when some board of directors had an important role in luckin coffee but claimed to be unaware of any problems.

What is an Information asymmetry?

In a formal setting, this refers to a condition whereby a business party possesses more information than the other party they are dealing with.

These type of asymmetry are caused by differences in information between the parties in an economic transaction.

Therefore, the situation described is an example of an Information asymmetry.

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why do new brands with a small market share tend to spend proportionately more for advertising and sales promotion than those with a large market share

Answers

The new brands with small market share are smaller and need to become more known and the ones with large market sales don’t need to well because their already a large company which means they are known and are doing well in sales

what is the difference between mandatory and discretionary spending?

Answers

Answer:

Mandatory spending is spending that is required by law. And discretionary spending is spending that must be authorized by the government every year.

Explanation:

hope this helps

A company has total assets of $2,500,000, current assets of $425,000, total liabilities of $1,575,000, and current liabilities of $320,000. Its current ratio is ______.

Answers

A positive current ratio is between 1.2 to 2, which means that an entity has 2 times as many current assets as its liabilities. Here, the current ratio is 1.33: 1, which represents that 1.33 assets are available to fulfill $1 debts.

What is Current Ratio?

The current ratio is the amount of income that measures a company's ability to pay short-term obligations or those that have to be repaid within one year.

The current ratio below 1 means that the company does not have enough liquid assets to cover its short-term liabilities

Formula:

[tex]\rm\,Current \; Ratio = \rm\,\dfrac{Current \;Assets }{Current \;Liabilities}\\\\\rm\,Current \; Ratio = \dfrac{ \$425,000}{\$320,000} \\\\\\\rm\,Current \; Ratio = 1.33[/tex]

hence,The current ratio is 1.33: 1, which represents that 1.33 assets are available to fulfill $1 debts.

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If the Federal Reserve wants to lower the interest rate to 4 percent, it must _____ the money supply to _____.

Answers

If the Federal Reserve wants to lower the interest rate to 4 percent, it must increase the money supply to lower interest rates.

Why the federal reserve wants to prevent a recession?

If the federal reserve wants to prevent a recession which means an economic condition when GDP falls or economy faces a low or negative economic growth.

Thus, first of all aggregate demand should increased to boost up the economy and money supply should increase to lower the interest rate then business will take more loans at lower rate and invest more in production to meet up the aggregate demand and increasing employment opportunities.

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