An implication of sticky inflation is that, through monetary policy changes, the Federal Reserve:has no impact on the real interest ratecan alter the real interest rate in the long runhas no impact on the unemployment ratehas no impact on inflationIf the rate of inflation is –2 percent, the output gap is –5 percent, the nominal interest rate is 5 percent, and the unemployment rate is 8 percent, the real interest rate is 3 percent.TrueFalse ( please tell me how u get the answers )
In Table 4.4, Dr. Viscusi estimates that the cost per life saved by current government risk-reducing programs ranges from $100,000 for unvented space heaters to $72 billion for a proposed standard to reduce occupational exposure to formaldehyde.a. Should the government equalize the marginal costs per life saved across all lifesaving programs?b. What is the efficient level of government spending
Answer the question below in no more than 250 words. Q1. To be successful, a central bank must (1) be independent of political pressures; (2) make decisions by committee; (3) be accountable to the public and transparent in communicating its policy actions and (4) operate within an explicit framework that clearly states its goals and makes clear the tradeoffs among them. Explain two concepts of central bank independence as it relates to the Federal Reserve. Make the case for and against an independent Federal Reserve. Is the Federal Reserve politically independent? How is the president of the United States able to exert influence over the Federal Reserve? ***Optional Bonus Question: Q2. Briefly compare the methods of controlling the money supply—open market operations, loans to financial institutions, and changes in reserve requirements—on the basis of the following criteria: flexibility, reversibility, effectiveness, and speed of implementation.
Ambrose has indifference curves with the equation x subscript 2 equals C o n s tan t minus 4 x subscript 1 to the power of 1 half end exponent, where larger constants correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose’s indifference curve when his consumption bundle is (16,5)?
discuss the condition under which exchange rate changes may actually reduce the risk of foreign investment.
Your company manufactures sports equipment. You are considering replacing a brand of golf clubs with a new line of golf clubs. which of the following is not considered to be an incremental cash flow in your capitol budgeting analysis?a) A reduction in revenue of $300,000 from terminating the old product line.b) Land that you own with a market value of $125,000 that might be used for the new product.c) $200,000 spent last year on research and development.d) $350,000 you will pay to Tiger Woods for promoting the new golf clubs.
Total Corporation is considering implementing a JIT production system. The new system would reduce current average inventory levels of $2,000,000 by 75% but would require a greater dependency on the company’s core suppliers for on-time deliveries and high-quality inputs. The company’s operations manager, John Chan, is opposed to the idea of a new JIT system. He is concerned that the new system will be too costly to manage, will result in too many stock outs, and will lead to the layoff of his employees, several of whom are currently managing inventory. He believes that these layoffs will affect the morale of his entire production department. The plant controller, Stephen Li, is in favour of the new system, due to the likely cost savings. John wants Stephen to rework the numbers because he is concerned that top management will give more weight to financial factors and not give due consideration to nonfinancial factors such as employee morale. In addition to the reduction in inventory described previously, Stephen has gathered the following information for the upcoming year regarding the JIT system:• Annual insurance and warehousing costs for inventory would be reduced by 60% of the current budgeted level of $350,000.• Payroll expenses for current inventory management staff would be reduced by 15% of the budgeted total of $600,000.Additional annual costs for JIT system implementation and management, including personnel costs, would equal $220,000.• The additional number of stock outs under the new JIT system is estimated to be 5% of the total number of shipments annually. 10,000 shipments are budgeted for the upcoming year. Each stock out would result in an average additional cost of $250.• Total’s required rate of return on inventory investment is 10% per year.Required:a ) From a financial perspective, advise whether Total Corporation should adopt the new JIT system.b ) Advise Stephen Li whether he should rework the numbers.c) Advise how Stephen Li could manage John Chan’s concern.
Hello, I need about 1 paragraph for this discussion question. Please help me with it. ThanksWhat are several significant IT developments that you expect to happen in the next ten years? How will these affect the business use of technology?
The Ford Motor Corporation issued 12 year bonds 2 years ago at an annual coupon rate of 9.5%. The bonds make semi-annual payments. The price of the bond is $1,066. What is the yield to maturity? What is the current yield?
Your friend is considering adding a new recording studio to his current business premises at a cost of $500K. The expected cash flows are as follows: yr1: $100K; yr2: $300K; yr3: $300K. At an opportunity rate of 15%, would you advise your friend to undertake the project today? Why?