Answer:
left as well as the contractionary monetary policy, then bring about the
increase of interest rate as well as reducing equilibrium quantity of money.
Explanation:
Liquidity Preference model can be regarded as a model gives suggestions about investor and interest rate, the model entails that high interest rate as well as premium on securities associated with long-term maturities with higher risk should be demanded by investors, reason behind this suggestions is that most investors will always go for cash as well as available highly liquid holdings, all things been equal. It should be noted that Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the left as well as the contractionary monetary policy, then bring about the increase of interest rate as well as reducing equilibrium quantity of money.
Answer:
$417 A.
It is an adverse variance.
Explanation:
Fixed factory overhead volume variance is the difference between budgeted output at 100% normal capacity and actual production volume multiplied by standard fixed overhead cost per unit.
Formula
Fixed factory overhead volume variance = (budgeted standard hours for 100% normal capacity - Actual standard output hours) × standard fixed overhead cost per unit.
Calculation
Since 5900 units of a product was produced in 3.546 standard hours per unit, total actual standard hour is therefore;
= 5900×3.546
=20,921 hours
Overhead cost per unit = $1.10 per hour
Hours at 100% normal capacity = 21,300 hours.
Recall the formula for fixed factory overhead volume variance is =(budgeted standard hours for 100% normal output- actual standard output hours)× standard fixed overhead per unit.
Therefore;
Fixed factory overhead volume variance =(21,300 hours - 20,921 hours)× $1.10
=379 hours × $1.10
=$417 A
It is therefore an adverse variance.
Answer:
J = 0.422
K = 0.58
Explanation:
When a portfolio is said to have risk that is equal to market, this means that the beta is equal to 1.
Let us define the weight of stock J = x
Let us define the Weight of stock K = (1-x)
To get the The Beta of portfolio = (x*1.26) + ((1-x)*0.81) = 1
When we open the brackets,
1.26x + 0.81 - .81x = 1
1.26x-0.81x = 1-0.81
0.45x = 0.19
To get x we divide through by 0.45
X = 0.422
Therefore the Weight of stock J = 0.422
Then the Weight of stock K = 1 - 0.422 = 0.578
Approximately 0.58
Answer: c. interest rate falls; investment rises
Explanation:
The Fed buying treasury securities from banks is an expansionary policy when the government wants to increase the money in circulation and increase economic growth.
When the Fed buys Treasury securities from banks, this will lead to availability of funds as prices will be pushed higher and there will be a reduction in the interest rate.
Since there is reduction in interest rate, investment will increase as investors will borrow from banks.