02 Jan which of the following best describes stable prices
D) Helping to … In other words, real economies that do not use money and money labor contracts to organize production (e.g., feudalism, slave economies, South Sea Islanders discovered by Margaret Meed, etc) may possess important nonlinearities and even an uncertain future — but there is never an important involuntary unemployment problem. In other words, hoarding of dollar denominated financial assets via government bond purchases was encouraged, allowing the government to purchase up to 60% of the real output without price competition from consumers. It is feared that deficit spending will cause an implied upward bias on labor costs from both the aggregate demand created by the deficit spending, and the elimination of the competition of the unemployed for available jobs. Banks would be unwilling to pay interest to attract overnight deposits that don’t earn interest. Tax liabilities are an ongoing debt the private sector owes the government, and they create a continuous need for dollars. For Whom? The chronic U.S. trade deficit, for example, means the dollar price of imports continually exceeds the dollar price of exports. B) It is the estimated long-run cost of a product that enables the company to achieve its target operating income. In either case, funds held by the private sector are transferred to the Fed, the government securities are credited to a member bank’s account, and a reserve drain equal to the proceeds of the securities sale results. In all cases, the private sector exchanges assets, goods, or services to the govt., the monopoly supplier, in exchange for dollars ultimately needed for payment of taxes. c. Commercial paper can be issued by virtually any firm so long as it … If they are correct, there would eventually be an equilibrium condition with the ELR pool dwindling to 0. Financial transactions are accounting information, and not considered as imports or exports. If a transaction does occur, the dollar denominated financial assets will change hands but not increase or diminish. When prices are stable, people can hold money for transactions and other purposes without having to worry that inflation will eat away at the real value of their money balances. As holders of dollar denominated financial assets, they are net nominal savers, much like any domestic holder of dollar denominated financial assets. 232. If the pool of $12,500 ELR workers is deemed by the electorate to be too large, taxes can be cut or public spending increased until the number drops to the desired level. The same logic applies to the physical printing of money. Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate to ensure price stability and general trust of the value and stability of the nation's currency. B) Helping to promote economic growth. Betty Rose Factor Volatility Quote Trading: A method of quoting option contracts whereby bids and asks are quoted according to their implied volatilities rather than prices. Ironically, it has chosen a monetary and fiscal policy that utilizes excess capacity, including unemployment, to maintain price stability, obviating the possibility of simultaneous achievement of both objectives. Exceptions include a few currency board systems as Argentina and Hong Kong. The banking system now has an overdraft at the Fed, known as a reserve deficiency, of 100. Which of the following best describes you? Dollar H(nfa) is not changed by foreign exchange transactions that do not involve the Federal Reserve acting for its own account. Price stability. But the behaviour of households whose net worth became negative following the fall in house prices was an important feature of the great recession that followed the financial crisis in … Investment, for example, is accounted for as savings in national income accounting, so, by definition, total investment will always equal total savings. These types of companies are often best … Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate to ensure price stability and general trust of the value and stability of the nation's currency. a. most futures contracts result in delivery. Perfect competition describes a market structure, where a large number of small firms compete against each other. c. Market price results in neither a surplus nor a shortage. We currently have a monetary system that can accommodate both full employment and price stability on a permanent basis. $12,500 per year was selected as the ELR wage for this proposal. This means that the price increased at a stable rate, not that the price levels remained stable. For example, an increase in net imports that results in the loss of private domestic employment will immediately result in an increase in the number of government $12,500 workers. For example, an available-for-hire pool of ELR workers means private sector employers will not be forced by shortages of unskilled labor to increase wages. If Bank A borrows from Bank B, the deficiency moves to Bank B and Bank B’s reserve account is overdrawn. It was followed by the WPA in 1935. To the contrary, all other prices, including asset prices, will be constantly changing as the market allocates via price. Which of the following statements best describes the optimal capital structure? The government has the same pricing options with its money of any monopoly supplier of an absolute necessity. Please help me to explain throughly Question: Research the environment and sustainability legislation found in the foll, Has Nature's Own adopted the marketing concept? of coal would likely change without the benefit of the oil in the Exclusive Economic Zone (EEZ)? It hit a high of 24.9% in 1933, and was still 14.6% as late as 1940. If either bank originates a new loan and creates a new deposit, assets and liabilities will increase equally, leaving the size of the deficiency unchanged. Firms will produce more only if prices increase. Our two goals of price stability and maximum sustainable employment are known collectively as the "dual mandate." If the government wishes to maintain an interest rate between “0 bid”, the condition coincident with a reserve excess, and “no offers”, the result of a reserve deficiency, it must offset operating factors that cause these conditions. For aggregate demand, the sixth determinant is the number of buyers. In 1990, the world had 98 mainline phones and 2 mobile phones per 1,000 people; in . Combined with a well run ELR policy, low rates should increase output dramatically with much of the increased output being investment. What Does Equilibrium Price Mean? Continuous low interest rates also did not seem to result in run-away asset prices. The national accounting double entry bookkeeping system is always in balance. Charles Goodhart The Dow equity index price did not recover to its 1929 highs until 1958, the 1927 highs were not reached until 1946, and the low of 1930 was not surpassed until 1936. Treasury securities, therefore, function not to fund expenditures, but to provide an interest bearing deposit for non-interest bearing excess reserve deposits. This increases government spending (and the budget deficit) which may result in other industries hiring workers away from the government. Even with a lead system, as the U.S. had in the 1960’s, practical considerations of short term inelasticities of bank loan portfolios result in the same Fed policy of acting only defensively in the money markets (Basil Moore, Horizontalists and Verticalists, 1988). The result is an anti-inflation policy that requires excess capacity in the private sector to keep market prices from rising. 13.If the short-run Phillips curve were stable, which of the following would be unusual? b. A pleasant experience because of the friendly crewmembers. Furthermore, if an agent wants to sell any real goods, and thereby increase his H(nfa), this too can only be accommodated by another agent decreasing his H(nfa). Also, employees recognize that ELR workers may replace them, though the cost to the employer will depend on the qualifications and training necessary to perform the task the employer desires. The Fed does not have the option to act proactively to add or drain reserves to directly alter the monetary base unless it is prepared to accept either a 0 bid interest rate, or an interest rate coincident with a reserve deficiency at one or more member banks. The variable is the rate, and possibly the collateral demanded by the Fed to secure the mandatory loan. A fixed exchange rate would present problems similar the gold standard since the gold standard is, for all practical purposes, a fixed exchange rate system. Its term ‘radical endogeneity’ asserts all deposits are the accounting records of loans, and deposit money exists only in conjunction with outstanding bank loans. A reserve excess or deficiency is defined as the banks having either an excess of reserves above the required level or a reserve total that is below the required level. If, however, commercial bank A’s depositor writes a check to the U.S. Treasury payment of taxes, the Fed debits the reserve account of Bank A and credits the Treasury’s account at the Fed. This would redefine the currency downward to that level- presumably the perceived market level that wages had gone to at that time. The government is, therefore, concerned not only with how the market will receive the debt it believes it needs to sell in order to fund itself, but also concerned that there may be a market determined funding limit. It can then be stated that if the private sector wanted to use some of its full employment income obtained by selling real goods and services to be held as H(nfa), the evidence is some combination of involuntary inventory accumulation and involuntary unemployment. Which of the following statements best describes the supply side of Economy B? The government is the monopoly issuer of the dollars needed by the private sector to pay taxes. In 1933, after several years of undesirable unemployment and depressed GNP, the Public Works Administration, the first public works program, was enacted. If variable costing is in use, one would expect: A) net operating income to be erratic over the three-year period. The ELR can be considered a labor standard policy that continuously defines the value of a dollar by the quality of ELR labor that can be hired at a given price. a. My bias was to err slightly on the high side, rather than risk an initial deflation. It may eventually be reduced by a reduction in desired H(nfa) because of lower interest rates, or, as some contend, by falling wages. This led to various extremes such as suspending domestic convertibility in 1934, and making it illegal for domestics to own gold, as well as strong support for balancing the federal budget. The concept of scarce jobs has led to a variety of programs designed to reduce the work force to limit unemployment. Low interest rates were not enough to decrease desired H(nfa). The companies that pay stable and predictable dividends are typically mature blue chip companies in well-developed industries. c. exit barriers are high. Αναζήτησε εργασίες που σχετίζονται με Which of the following best describes the subject matter of the realism period ή προσέλαβε στο μεγαλύτερο freelancing marketplace του κόσμου με 19εκ+ δουλειές. The public would associate higher trade deficits with an increasing standard of living, lower taxes, and other such benefits. Mobile phones do not require the massive infrastructure investment that mainline Furthermore, not providing the desired H(nfa), and letting unemployment remain at current levels, would define a deflationary and contractionary bias. Net financial assets are increased by paying down debt or by increasing the current stock. To minimize disruption, an initial ELR wage should be one that is not so high as to draw workers away from the private sector, and not so low as to require a general deflation to bring actual H(nfa) in line with desired H(nfa). 1.The retail price of a sweater is $75 and the initial markup is 51 percent. In the commercial banking system loans create deposits as an accounting entry. Total deposits in the commercial banking system remain unchanged: Bank A and Bank B are in balance. 3. All other prices float at market levels and reflect nominal value relative to the set price of gold. Further recognized is that deficit spending poses no financial solvency risk to the government. Commercial paper is typically offered at a long-term maturity of at least five years. This would be evidenced by a slowdown in sales as private sector income was insufficient to realize a desired H(nfa) and purchase the output of business. You will have 200 shares of stock, and the … The converse holds if the ELR wage is set too low. Disinflation describes a falling inflation rate. Producer surplus represents the revenue generated from sales over and above the minimum price at which sellers are willing to sell. Which of the following statements best describes the theories of investors' preferences for dividends? GNP reached a high of $203.6 (billions of 1958 dollars) in 1929; fell to a low of $141.5 in 1933, and by 1939, had crept up only to $209.4. Other wages are subject to market forces. For example, layoffs in the private sector would result in additional $12,500 government workers of higher quality than the existing pool. Government spending exceeded tax collections in 1942, 1943,1944, and 1945 by 14.5%, 31.1%, 23.6%, and 22.4% of GNP respectively. This ELR proposal is a logical extension of Keynesian and Post- Keynesian thought. If market interest rates are stable, preferred stock prices should be stable as well. Labor would welcome the safety net of a guaranteed job, and business would recognize the benefit of a pool of available labor it could draw from at some spread to the government wage paid to ELR employees. Going forward, I will describe each coin, its purpose, team, liquidity, price volatility, and other metrics. The ELR proposal also has characteristics similar to the current Federal unemployment compensation policy. Anyone who lives entirely on his interest income may otherwise need employment. Unemployment is defined as idle labor offered for sale with no buyers at that price. 47) Which of the following best describes a competitor with an ability to develop new products? This program does not necessarily defeat the real business or inventory cycle. Great effort was taken to ensure that rationing was perceived as equitable ensuring public support for the program. b. only Words and phrases used to describe a stable trend. H(nfa) is thereby reduced, until it matches the H(nfa) desired by the private sector. The focus of this analysis is on an entirely different option in which the government assumes the role of employer of last resort (ELR), eliminating involuntary unemployment, and price stability is maintained by the government restraining the price it pays for the proposed supplementary ELR labor pool. In the UK the inflation rate remained stable. How does the monopolist price his product? To the extent that higher real rates increase the rentier population, potential output is reduced. Since reserve requirements are determined by a deposit count from a previous time period, and reserve accounts do not pay interest, demand for reserves is inelastic. The value of a currency is determined by what the government demands the private sector must do or sell to obtain it. In this scenario, a single firm does not have any significant market power. 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