?Discuss the effectiveness of a monetary policy in an economy in which banks are indifferent between holding bonds and holding cash as reserves.
What will be an ideal response?
This economy is at the zero lower bound, and may be in a liquidity trap. Any increase in the economy's monetary base ?would end up held as excess reserves by banks. The money multiplier would decline, just offsetting the increase in the monetary base, and the money supply would remain unchanged. Therefore, a monetary policy to increase money supply is ineffective in an economy that is at the zero lower bound.
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Political candidates who get the most media coverage are more likely to win elections because of the effect of ________ in determining one's set of referents
A) propinquity B) mere exposure C) group cohesiveness D) reference bias
Which statement is not correct?
a. cost objects are the reasons for performing activities b. cost object describes the work performed in a firm c. activities cause costs d. cost objects create a demand for activities
How is a company that buys a block of advertising pages in a magazine to advertise its brand striving to eliminate noise, as it is defined in the communication model?
What will be an ideal response?
A company's Cash account shows an ending balance of $4,600
Reconciling items included a bookkeeper error of $105 (a $525 check recorded as $630 ), two outstanding checks totaling $830, a service charge of $20, a deposit in transit of $260, and interest revenue of $33. What is the adjusted book balance? A) $4,482 B) $4,030 C) $4,718 D) $5,170