Assume a majority of governors are reluctant to increase interest rates to fight inflation for fear of causing too much unemployment in the short run. how is this situation most likely to affect the fed's credibility? a. if the board of governors has less "conservative" preferences than the public, it will be less tempted to pursue expansionary monetary policy and hence increase the fed's credibility. b.this could be troublesome for the fed's credibility, as it might require more-than-necessary increases in interest rates to show the public that the fed still focuses on fighting inflation. c.the public's expectations about future inflation rates will increase and the fed will focus more on fighting inflation, increasing the fed's credibility. d.this could be favorable for the fed's credibility, as it might require less-than-necessary increases in interest rates to show the public that the fed's priority on fighting inflation remains intact.

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Danielle enjoys working as a certified public accountant (cpa) and assisting small businesses and individuals with managing their finances and taxes. which general area of accounting is her specialty? danielle specialized in