subject
Business, 20.03.2021 01:00 Heyitsbrandi

Shelley is the Chairman of the Federal Reserve. She is in charge of making decisions for the Fed that will impact the economy in the country, and she must make her decisions from current market data. An economy that is growing too fast could be detrimental as it could lead to high inflation and devaluing of the currency, but an economy that is sluggish will cause unemployment to rise. Shelley is faced with a current unemployment rate of 4.7%. This rate, coupled with an inflation rate over the last year of 496, causes Shelley to take action. The Fed is currently offering a discount rate of 1.8%, and the market interest rate on one-year investments is averaging 2.3%. After meeting with the president, Shelley learns that the administration does not want to raise taxes, as it fears this could hurt its public image in the year prior to elections. The president has been making frequent public statements that the economy has been doing very well the past couple years and the dollar has been strong. As the president is shying away from using fiscal policy to control the economy, it is now up to you to use monetary policy. From the scenario the chairman of the fed should:

a. increase the reserve requirement

b decrease the reserve requirement

c.. let the president/congress decrease taxes

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 19:40
Prairie, inc. produces one single product. it has an annual capacity of 10,000 units, but currently uses only 80% of it. each unit is sold for $50 and requires direct material worth $30 and direct labor worth $5. manufacturing overhead cost is $10 per unit of which 70% is variable. should a special order to sell 1,000 units at $44 be accepted? yes no
Answers: 2
question
Business, 22.06.2019 03:30
Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.
Answers: 1
question
Business, 22.06.2019 10:00
How has internet access changed and affected globalization from 2003 to 2013? a ten percent increase in internet access has had little effect on globalization. a twenty percent decrease in internet access has had little effect on globalization. a thirty percent increase in internet access has sped up globalization. a fifty percent decrease in internet access has slowed down globalization.
Answers: 1
question
Business, 22.06.2019 17:20
Arecession is defined as a period in which
Answers: 1
You know the right answer?
Shelley is the Chairman of the Federal Reserve. She is in charge of making decisions for the Fed tha...
Questions
question
Business, 23.03.2021 21:50
question
Chemistry, 23.03.2021 21:50
question
Mathematics, 23.03.2021 21:50
Questions on the website: 13722367