Suppose the target range for the federal funds rate is 1.5 to 2 percent but that the equilibrium federal funds rate is currently 1.7 percent. Assume that the equilibrium federal funds rate falls (rises) by 1 percent for each $120 billion in repo (reverse repo) bond transactions the Fed undertakes. If the Fed wishes to raise the equilibrium federal funds rate to the top end of the target range, will it repo or reverse repo bonds to non-bank financial firms? How much will it have to repo or reverse repo?

Answer:

C = 1.75Q + 4,990

variable 1.75

fixed component 4,990

Explanation:

High-Low method:

we subtract the highest level of activity with the lowest one:

24,398 units generates 42,696 cost

with this information we can solve for variable cost.

42,696 / 24,398 = 1.75

Now we calcualte the fixed cost:

TC = variable x Q + fixed cost

82,620 = 1.75 (44,360) + fixed cost

82,620 - 77630 = 4990

the formula will be:

C = 1.75Q + 4,990

Answer: variable 1.75

fixed component 4,990

Explanation:  subtract the highest level of activity from the lowest one

44,360-19,962=24,398

82,620-39,924=42,696

then do 42,696 / 24,398 = 1.75

Now for fixed cost:

82,620 = 1.75 (44,360)

82,620 - 77630 = 4990

Answer:

Strategic leaders can help any airline related issue to be solved

Explanation:

Strategic leaders are needed everywhere. An airline company would indeed benefit from a strategic leader and or manager

Answer:

1. The most you would be willing to pay for having a freshly washed car before going out on a

date is $6. The smallest amount for which you would be willing to wash someone else's car is

$3.50. You are going out this evening, and your car is dirty. How much economic surplus

would you receive from washing it?

The economic surplus from washing your dirty car is the benefit you receive from doing so ($6)

minus your cost of doing the job ($3.50), or $2.50.

2. To earn extra money in the summer, you grow tomatoes and sell them at the farmers' market

for 30 cents per pound. By adding compost to your garden, you can increase your yield as

shown in the table below. If compost costs 50 cents per pound and your goal is to make as much

money as possible, how many pounds of compost should you add?

Pounds

of

compost

Pounds

of

tomatoes

Marginal

Cost

($)

Marginal

Benefit

(pounds)

Marginal

Benefit

($)

Net

Benefits

Marginal

Net

Benefits

0 100 ---- 0 --- 0 ---

1 120 0.50 20 6.00 5.50 5.50

2 125 0.50 5 1.50 6.50 1.00

3 128 0.50 3 0.90 6.90 0.40

4 130 0.50 2 0.60 7.00 0.10

5 131 0.50 1 0.30 6.80 - 0.20

6 131.5 0.50 0.5 0.15 6.45 - 0.35

The benefit of adding a pound of compost is the extra revenue you’ll get from the extra tomatoes

that result. The cost of adding a pound of compost is 50 cents. By adding the fourth pound of

compost you’ll get 2 extra pounds of tomatoes, or 60 cents in extra revenue, which more than

covers the 50-cent cost of the extra pound of compost. But adding the fifth pound of compost

gives only 1 extra pound of tomatoes, so the corresponding revenue increase (30 cents) is less than

the cost of the compost. You should add 4 pounds of compost and no more.

3. Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are

allowed to put out as many cans as they wish. The average household disposes of three cans of

garbage per week under this plan. Now suppose that your city changes to a "tag" system. Each

can of refuse to be collected must have a tag affixed to it. The tags cost $2 each and are not

reusable. What effect do you think the introduction of the tag system will have on the total

quantity of garbage collected in your city? Explain briefly.

In the first case, the cost is $6/week no matter how many cans you put out, so the cost of

disposing of an extra can of garbage is $0. Under the tag system, the cost of putting out an extra

can is $2, regardless of the number of the cans. Since the relevant costs are higher under the tag

system, we would expect this system to reduce the number of cans collected.

Explanation:

Answer:

The correct answer is letter "A": are rarely worth their face value.

Explanation:

Accounts receivables are notes issued to customers after selling them a product or rendering services on credit. The repayment term may vary from 30, 60 or 90 days. If an account receivable is not paid after that period it could be considered as an uncollectible account which implies the company will incur losses.

Accounts receivable are hardly ever accepted at face value (real value of the moment of the purchase) because companies add the interest rate that is to be charged for the sale on the account.

Answer:

This agent is probably guilty of

Blockbusting

Explanation:

Blockbusting is an illegal act. It is a manipulative method used by real estate agents to get homeowners to sell or rent their property at a cheaper rate by lying to them that the socioeconomic demography of the neighborhood is changing, so they have to sell before it is too late. This can be seen in how the agent informs the owners that their property experienced a decline in the past 5 years because of the minorities who moved in. The Fair Housing Act of 1968 makes blockbusting illegal.