Cormer Federal Reserve Chair Greenspan once observed that - contrary to economic theory - interest rates in the remained low even though fiscal deficits were growing after the 1980s. How can we use the open econnmu cavinn-invastment model to solve the Greenspan puzzle?
Answers
The Greenspan puzzle refers to the observation that despite increasing fiscal deficits in the United States after the 1980s, interest rates remained low, which contradicts conventional economic theory. The open economy savings-investment (SI) model can help explain this puzzle.
In the SI model, the interest rate is determined by the equilibrium between national savings and investment. One possible explanation for the Greenspan puzzle is that while fiscal deficits were increasing, private savings were also increasing, offsetting the impact on the overall savings-investment balance.
Under this explanation, the increased fiscal deficits were accompanied by higher government spending, which stimulated economic activity and increased private income. As a result, individuals and businesses had higher incomes, leading to higher private savings. The increase in private savings counteracted the potential crowding-out effect of increased government borrowing, keeping interest rates low.
Moreover, the United States has been a global capital importer, attracting foreign capital inflows. The influx of foreign capital increases the supply of loanable funds, putting downward pressure on interest rates. This could have further contributed to the low interest rates despite growing fiscal deficits.
Therefore, the open economy savings-investment model suggests that the Greenspan puzzle can be explained by the offsetting effect of increased private savings and the influence of foreign capital inflows, which helped keep interest rates low despite growing fiscal deficits.
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Related Questions
When you order a sweater from an l.l.bean mail-order catalog, what type of marketing channel are you and the company using?
Answers
Direct marketing channel used for ordering a sweater from an L. L. Bean mail-order catalog.
A direct advertising channel consists of just two parties—a producer and a client. by evaluation, a channel that consists of one or extra intermediaries (wholesaler, distributor, broker, or agent) is an oblique channel. Corporations often utilize a couple of channels to reach more clients and boom their effectiveness.
Direct advertising and marketing is a promotional method that involves supplying records approximately your organization, product, or provider for your goal consumer without the use of an advertising middleman.
Direct marketing channels are those that interact with clients on an individual basis. They do not need an intermediary party to handle their activities because direct coordination is more advantageous and efficient.
For instance, banks deal with each consumer individually. Direct marketing is used by computer or technology dealers whose primary duties would be skill-related. Dell is an illustration of a company in the computer and technology sector that uses this tactic.
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Which ethical violation involves profiting by using the name or slogan of another company?
Copyright violation
Libel
Plagiarism
Slander
Answers
Answer:
Copyright infringement (at times referred to as piracy) is the use of works protected by copyright law without permission for a usage where such permission is required, thereby infringing certain exclusive rights granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work, or to make derivative works. The copyright holder is typically the work's creator, or a publisher or other business to whom copyright has been assigned. Copyright holders routinely invoke legal and technological measures to prevent and penalize copyright infringement.
Problem No. 1. "In your home, when you want to eat egg sandwich before going to school, your mother would surely prepare it for you. Your egg sandwich would not be produced without a process." 1.who would » 1. Who would be your manpower? 2. What would be your materials? 3. What machines or tools would you use? 4. What methods are needed to produce the egg sandwich? (Cooking procedures- enumerate them).
Answers
Your egg sandwich would be produced by your mother, using egg and bread as production materials. The machines or tools used could be a stove, a frying pan and a spatula.
The cooking methods needed to make the egg sandwich consist of separating the materials to be used, frying the egg, seasoning with salt and pepper, then reserving.
After you have fried the egg, you should heat the two slices of bread in the frying pan, place the egg between the slices and press it with the spatula to compress the sandwich.
This is a healthy snack that provides the protein and carbohydrates needed to give the body energy and nutrients to start the day.
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Appraisals reveal that the inventory has a fair value of $120,000, and the equipment has a current value of $410,000. The book value and fair value of liabilities are the same. Assuming that Peach Company wishes to acquire Stream for cash in an asset acquisition, determine the following cutoff amounts:
a. The purchase price above which Peach would record goodwill.
b. The purchase price below which the equipment would be recorded at less than its fair market value.
c. The purchase price below which Peach would record an extraordinary gain.
d. The purchase price below which Peach would obtain a "bargain."
e. The purchase price at which Peach would record $50,000 of goodwill.
Answers
a. The cutoff amount for recording goodwill would be $530,000 ($120,000 + $410,000). This is the total fair value of Stream's assets.
b. If the purchase price is below $410,000, Peach would record the equipment at less than its fair market value.
c. There is no specific cutoff amount for recording an extraordinary gain, as it depends on the company's individual circumstances.
d. If the purchase price is significantly below the fair value of Stream's assets and liabilities, Peach may be obtaining a bargain. However, there is no specific cutoff amount for this.
e. If Peach acquires Stream for a purchase price of $580,000 ($530,000 + $50,000), they would record $50,000 of goodwill. This is calculated by subtracting the total fair value of Stream's assets and liabilities from the purchase price.
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Chelsie Sykes, a manager for a medical devices manufacturer, is organized and self-disciplined. She thinks carefully before she speaks, turns in error-free reports, and tirelessly strives to meet her goals. Chelsie is demonstrating
Answers
The personality trait that Chelsie Sykes, a manager for a medical devices manufacturer, is demonstrating is conscientiousness .
Option A is correct
Conscientiousness is the personality trait that describes how responsible and organized a person is. This includes being self-discipline thinking carefully before speaking, turning in error-free reports, and tirelessly striving to meet goals. A person who is high in conscientiousness tends to be dependable, organized, responsible, achievement-oriented, and self-disciplined.
They are able to set goals and make plans to achieve them. They are reliable, thorough, and careful in their work, and are often seen as highly competent and capable of managing complex tasks. They have a strong sense of duty and are committed to meeting their obligations.
Therefore, Chelsie Sykes, a manager for a medical devices manufacturer, is demonstrating conscientiousness.
Incomplete question :
Chelsie Sykes, a manager for a medical devices manufacturer, is organized and self-disciplined. She thinks carefully before she speaks, turns in error-free reports, and tirelessly strives to meet her goals. Chelsie is demonstrating__________
a. conscientiousness.
b. openness to experience.
c. agreeableness.
d. neuroticism
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sove 3logx + 5 is equal to 8
Answers
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\(3 log(x) + 5 = 8\)
Subtract sides 5
\(3 log(x) + 5 - 5 = 8 - 5\)
\(3 log(x) = 3\)
Divide sides by 3
\( \frac{3 log(x) }{3} = \frac{3}{ 3} \\ \)
\( log(x) = 1\)
_________________________________
Reminder :
\( log_{a}(x) = b\)
\(x = {a}^{b} \)
_________________________________
Thus ;
\( log_{10}(x) = 1\)
\(x = {10}^{1} \)
\(x = 10\)
Done...
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Which of the following gas satisfaction measures wWhich of the following gas satisfaction measures would Be this for a company to use if they want to estimate how many customers might recommend them to their friends?
CES
CSAT
PSC
NPS
Answers
Answer:
Simple Random Sample
Explanation:
what are the four categories of income?
Answers
The four categories of income are wages and salaries, interest, rent, and profits.
- Wages and salaries are the payments that employees receive from their employers in exchange for their work. This includes regular wages, tips, and bonuses.
- Interest is the income that is earned from investments, such as savings accounts or bonds.
- Rent is the income that is earned from leasing or renting out property, such as a house or an apartment.
- Profits are the income that is earned from running a business, after all expenses have been paid.
Each of these categories of income plays an important role in the economy and helps to determine the overall level of economic activity.
It is important for individuals to understand the different categories of income in order to make informed financial decisions and plan for their future.
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If you were the CEO of a company that was looking to implement strategies to fill a perceived strategic-planning gap, you would most likely explore ____ strategy first because it is easier to improve an existing business than to build a new one.
Answers
The strategy of market-penetration will be employed because it is helps to improve an existing business than to build a new one.
What is market-penetration?The strategy of market penetration is used for a product or service in the existing market to build a larger customer base, increase market sales etc
In conclusion, the strategy of market-penetration will be employed because it is helps to improve an existing business than to build a new one.
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PLEASE HELP!!! What is the name for the highest amount a policyholder pays for deductibles, coinsurance, and co payments?
A. benefit maximum
B. coverage maximum
C. out-of-pocket maximum
D. premium maximum
Answers
Answer:
out of pocket
Explanation:
plato
Market failure associated with the free-rider problem is a result of.
Answers
Market failure associated with the free-rider problem is a result of benefits that accrue to those who don't pay.
What is market failure?Market failure refers to a situation when there's an inefficient distribution of resources in the market.
Market failure occurs when the free market does not distribute resources efficiently. This leads to rational outcomes for the group as a whole.
Hence, market failure associated with the free-rider problem is a result of benefits that accrue to those who don't pay.
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The main purpose of a depository institution is to:
A. hold deposits in accounts and use that money to offer loans.
B. provide guaranteed payments to depositors under specific
conditions.
C. use deposited money to purchase stocks and bonds in order to
make a profit.
D. allow customers to deposit money into accounts at no charge.
SUBMIT
Answers
Answer:
A. hold deposits in accounts and use that money to offer loans.
Explanation:
Depository institutions include commercial banks, credit unions, among others. They provide a safe, secure, and convenient way for customers to save money and a source of credit for households and businesses. Depository institution offers interest on deposits and uses that money to extends loans at a higher interest.
Interest on loans is the main source of revenue for depository institutions. They create loans from customer deposits and facilitate household and business expansion in the economy.
A. hold deposits in accounts and use that money to offer loans.
Jacques designs and produces blankets. The selling price for each blanket is $25. Jacques spends $7.50 on the wool and thread to produce each blanket. For each blanket that Jacques produces, he pays himself $10.
What is the added value for Jacques’ blankets?
please help
Answers
Answer:
$7.50
Explanation:
Added value is the increase in value arising from the production process. It is between the price of the finished good or services and the cost of inputs.
For Jacques's blankets, the cost of inputs will be labor plus materials.
=$7.50 + $10 = $17.50
The selling price is $25.
Added value
= $25- $17.50
=$7.50
big time inc. has an independent, permanent work group that develops and revises codes of ethics, suggests ways the organization can contribute to preserving the environment, and regularly reviews other specific issues and concerns within the organization. this is an example of a group of answer choices
Answers
This is an example of Committee
What is Committee?A body of one or more people under the authority of a deliberative assembly is known as a committee or commission. A committee isn't taken into account to be an assembly in and of itself. The assembly typically refers issues to a committee in order to investigate them in greater detail than would be practicable if the assembly were to consider them directly.Contributing to an organization's effective operation is a committee's main duty. The majority of the time, a committee is focused with information sharing and supporting the leadership in making decisions by supplying necessary information.To learn more about Committee refer to:
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What is 2+2-5x(87x-32)=
Answers
Answer:
-435x^2+160x+4
Explanation:
put the 2 as a square root
hope it help!
As the tax wedge associated with a given economic activity gets smaller, we would expect
A) the distortions caused by taxes on that activity to be greater.
B) people will spend more on that economic activity.
C) no change in the practice of that activity until the tax wedge ultimately disappears.
D) more of that economic activity to occur.
E) people to engage in less of that particular activity.
Answers
As the tax wedge associated with a given economic activity gets smaller, we would expect (D) more of that economic activity to occur.
The tax wedge refers to the difference between the pre-tax and post-tax prices of a good or service. When taxes increase, the tax wedge increases, making the good or service more expensive for consumers and potentially reducing demand. Conversely, when taxes decrease, the tax wedge decreases, it reduces the burden of taxes on that activity, making it more attractive for individuals and businesses to engage in it, making the good or service more affordable for consumers and potentially increasing demand.
If the tax wedge associated with a particular economic activity decreases, such as through a tax cut or tax credit, consumers will have more disposable income available to spend on that activity. As a result, demand for the activity is likely to increase, leading to more production and economic activity in that area.
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A salesperson has attempted to follow up with a client on multiple occasions to answer some questions about renewing a contract, but the receptionist will only put her through to voice mail. Here, the receptionist acts as a(n) _______ in the buying center.
Answers
Answer:
gatekeepers
Explanation:
Business center is also known as Decision Making Unit. There are five main roles in the buying center. User, Influencer, Decider, Buyer, Gate Keeper. It bring all the member of the organization together who are involved in the buying process of a particular product or service. Gatekeeper are the ones who control the flow of information to and among the other salesperson within the business center. Here the receptionists is also acting as a gate keeper between client and sales person.
Personal finance please help me thank youu
Answers
Personal finance is the management of an individual's financial resources. It involves making informed decisions about earning, spending, saving, investing, and managing debt. Proper management of personal finances is essential for achieving financial goals and avoiding financial stress.
The first step in managing personal finances is creating a budget. A budget helps individuals to track their expenses and income and ensure that they are spending within their means. It is essential to prioritize expenses and allocate resources accordingly. This involves distinguishing between needs and wants and making necessary adjustments. Savings are a crucial aspect of personal finance. Individuals should aim to save at least 10% of their income to build an emergency fund and save for long-term goals.
Saving requires discipline and consistency, and it is essential to develop a savings plan that is achievable. Investing is another critical aspect of personal finance. Investing helps individuals to grow their wealth and prepare for future financial needs. It is crucial to research investment options and diversify investment portfolios to minimize risks. Managing debt is also essential for personal finance. Individuals should aim to minimize debt and pay off high-interest debts first. It is important to avoid accumulating unnecessary debt, such as credit card debt, which can quickly spiral out of control.
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In the accounting equation, assets are equal to which two things?
A. Debits + equity
B. Debits + accounts
C. Liabilities + equity
D. Liabilities + accounts
Please select the best answer from the choices provided
A
B.
OOOO
С
D
Answers
Answer:
C. Liabilities + equity
Explanation:
Edg 2021 ...
to my brother jayjay
Answers
hahahahahhaha
that is very funny i am laughing so hard i am crying
Supporting the conditions for economic reconstruction is an action in the _____ phase.
Answers
Assisting the situations for economic reconstruction is an action within the stable section.
In contrast to this situation, monetary reconstruction helps the introduction of recent establishments and the redesign of vintage ones. The fundamental concept is to create a brand new manner to prepare the financial system and society in order that institutions work for, instead of in opposition to, peoples' interests and desires.
Throughout Reconstruction, many small white farmers, thrown into poverty via the struggle, entered into cotton production, a chief alternate from prewar days when they targeted growing meals for their personal families. Out of the conflicts at the plantations, new structures of hard work slowly emerged to take the place of slavery.
Among the different achievements of Reconstruction have been the South's first nation-funded public school systems, more equitable taxation legislation, legal guidelines in opposition to racial discrimination in public shipping and inns, and formidable financial development packages (which include aid to railroads and different businesses).
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Name three factors that determine a good’s or service’s elasticity.
Answers
Answer:
Many factors determine the demand elasticity for a product, including price levels, the type of product or service, income levels, and the availability of any potential substitutes. High-priced products often are highly elastic because, if prices fall, consumers are likely to buy at a lower price.
Explanation:
Answer:
(1) availability of substitutes(2) if the good is a luxury or a necessity, (3) the proportion of income spent on the good, and(4) how much time has elapsed since the time the price changed.14. On the basis of the following data, determine
the value of the inventory at the lower of cost or
market. Apply lower of cost or market to each
inventory item as shown in Exhibit below.
Item Invent
Answers
Exhibit shows the data of inventory items and their unit cost. In order to calculate the value of the inventory at the lower of cost or market, we need to first determine the market value of each item.
The market value is the lower of replacement cost or net realizable value. Replacement cost is the cost to replace an inventory item at its current condition and location while net realizable value is the selling price of the inventory item minus any additional selling costs such as shipping or advertising costs. We can use the following table to calculate the market value of each inventory item:
Item Cost Replacement Cost NRV Market Value
A $25 $26 $27 $25
B $20 $19 $18 $18
C $35 $33 $31 $31
D $30 $28 $25 $25
E $15 $14 $14 $14
Using the lower of cost or market rule, we can calculate the value of the inventory at the lower of cost or market by multiplying the market value of each item by its quantity and adding up the results. Thus, the value of the inventory at the lower of cost or market is:
($25 x 50) + ($18 x 75) + ($31 x 40) + ($25 x 60) + ($14 x 120) = $1250 + $1350 + $1240 + $1500 + $1680 = $7010
Therefore, the value of the inventory at the lower of cost or market is $7010.
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Which plan would most likely NOT help you reach the savings needed for college?
Answers
D. Start saving about two months before college begins
What are B2C and B2B sales?
Answers
B2C and B2B sales refers to business-to-consumer and business-to-business sales respectively.
What is business-to-consumer sales?Business-to-consumer (B2C) companies having consumers as their end-users increasingly came to be known by this phrase when it gained popularity in the 1990s.
This contrasts with business-to-business (B2B) firms, or those whose main customers are other businesses. B2C businesses conduct their business online and offer goods to clients. Several B2C corporations include Amazon.
B2C, or business-to-consumer, is a retail model where things are delivered directly to the customer who has made a personal purchase of the goods or service.
Business-to-business sales are referred to as B2B sales. It describes enterprises or salespeople who engage in direct business-to-business (B2B) sales of goods and services.
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You work at an insurance agency. Your boss has asked you to purchase eight computer screens for the office. You are considering two online stores. The first store charges $629.99 total for the screens and offers free shipping. The second store charges $579.49 total for the same screens, and charges $39.99 for shipping all eight screens. Additionally, you have an online code for a $20 discount at the first store. What is the final cost for the store that offers the better deal?
Answers
Answer:
after you compute the total costs per store, you should purchase the computer screens from the first store
Explanation:
the total cost for the first store = $629.99 (including freight) - $20 (discount coupon) = $609.99
the total cost for the second store = $579.49 (computer screens) + $39.99 (freight) = $619.48
after you compute the total costs per store, you should purchase the computer screens from the first store
Rich is the highest-paid quarterback in the league, at $5 million per season. Rich is an eight-year pro and has yet to reach the playoffs. Rich's hometown team, the Whalers, are interested in him. If the Whalers sign Rich for $2.5 million per year, how much is the annual "hometown discount" that the Whalers will receive?
Answers
Answer:
$2,500,000
Explanation:
Drive-Ins borrowed money by issuing $ 2 comma 500 comma 000 of 8 % bonds payable at 96.5. Interest is paid semiannually. Requirements 1. How much cash did Sonic receive when it issued the bonds payable? 2. How much must Sonic pay back at maturity? 3. How much cash interest will Sonic pay each six months? Requirement 1. How much cash did Sonic receive when it issued the bonds payable?
Answers
Answer:
I don't think he got any back
Explanation:
The money could have been a tip.
Se venció una letra de cambio por $2,000 hace tres meses y se cobra el 1% mensual más IVA (16%) de intereses. Cual es el ajuste
Answers
Answer:
ajuste por moras e intereses = $23.20
valro de la letra de cambio = $2,000
total $2,023.20
Explanation:
el interes real que se cobra por mes = 1% x (1 + 16%) = 1.16%
el valor total de los intereses cobrados mas la letra inicial = $2,000 x (1 + 1.16%)³ = $2,000 x 1.016³ = $2,023.20
ajuste por moras e intereses = $23.20
valro de la letra de cambio = $2,000
total $2,023.20
Multiple Choice
Which of the following illustrates why corn was such a precious commodity to Native Americans?
The kernels were easy to transport.
It was easy to plant and grew quickly.
o One kernel could produce one to two ears.
It could be grown in any type of soil.