2 Suppose that the federal government increases spending by $1 and aggregate demand increases by more than$1. What is the economic term for this effect?Select one:O A. spendingO B. multiplierO C. lakeO D. duplicatorM2 refers to:Select one:O A. currency plus checkable deposits.O B. currency, checkable deposits, savings deposits, money market mutual funds, and small-time deposits.OC. currency.O D. currency plus total reserves held at the Fed.

The concept of multiplier is specified in economic that are changed in one output will affect the…

Answered: Suppose that the federal government…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the following terms for this question: C = Consumption. I = Capital investment spending. G = Government spending. X = Exports of goods and services. M = Imports of goods and services. BOP = Balance of Payments. GDP = Gross Domestic Product. NPV = Net Present Value. INF = Inflation. R = Real rate of return. The static equation for a country’s GDP is: A. GDP = C + I + G + X – M - (R – INF). B. GDP = C + I + G + X + M. C. GDP = C + I + G + X – M. D. GDP = C + I + X - M + R – INF.
FINANCE> CAPITAL MARKETS 1. What are the 2 classification of monetary standards and explain each. 2. Under the fiat standard or fiat money, which of the money is used by the Central Bank to stabilize the circulation of money in a country? 3. What are the types of liability. Explain each and give example.
Which of the following are the instruments of money market? Select one: a. All of the above b. None c. Certificate of deposits d. Trade bills e. Call money
Suppose that the Reserve Bank "tightens" monetary policy. In what order do events occur when this happens? Answer: First: ? Second: ? Third: ? Fourth: ? Select from (the pic attached)
Which of the following instruments has the highest cost? Seleccione una: a. Fed Funds b. Commercial Paper c. Eurodollars d. Prime rate
Which of the following is a tool that is used by the central bank to control the quantity of money? *a. gdpb. excess reservec. open market operationsd. government expenditure multiplier
Give typing answer with explanation and conclusion When a bank increases its fed funds sold, its deposit balance in the Fed will _________ ; when a bank's deposit balance in the Fed increases, the bank has increased its fed funds______ Group of answer choices increase; purchased increase; sold decrease; purchased decrease; sold
Choose the correct answer 1.) Which of the following is/are the possible effects of introducing fresh currency?[S1] Increase in money supply with the public [S2] The rise in the nominal income of public [S3] The fall in the general price level A.) Statement 1 only. B.) Statements 1 and 2 only. C.) Statement 2 only. D.) Statements 1, 2, and 3. 2.) If the quantity of money demanded exceeds the quantity of money supplied, then the interest rate will A.) fall B.) remain constant C.) rise D.) change in an uncertain direction 3.) [Case 1] Mortgagor A earns P50,000 a month while Mortgagor B earns P80,000 per month. [Case 2] Mortgagor C is willing to make a down payment of P3,000,000 while Mortgagor D will make a down payment of P5,000,000. Assuming everything else is held constant, who will have a better credit rating A.) A and C B.) A and D C.) B and C D.) B and D
Answer the following statements It is an average interest rate that banks offer in the financial market: a. effective rate b. Cetes c. CPP d. TIIE It is the payment for the use of someone else's money: a. simple interest b. interests c. amount d. interest rate
Please answer the following question. In this method, the company compares the amount spent on the investment with the discounted expected future cash inflows. a.Payback b.NRV c.Investment d.IRR
Question #2. If we know the projected cash flows from loan notes and their current market value, what approach would we take to deducing the cost of the loan notes?
What is the ultimate objective of financial management? Question 7 options: to ensure the ROA is higher than ROR to obtain a higher ROR than ROA to ensure that ROA is higher than the cost of financing to collect trade receivables faster than the payment of trade and other payables

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