Suppose that in a country politicians feel that interest rates are too high and they advocate a greater rate of growth of the money supply to decrease the interest rate. Figure (a) illustrates the effect of an increased rate of money supply growth at time period 0.
Figures (b) and (c) illustrate the effect of an increased rate of money supply growth at time period T0.
i) If a decline in interest rates is desired, in which case (a, b or c) an increase in money supply growth should be called for? Explain, why?
ii) In which case (a, b or c) a decrease in money growth is appropriate to decrease the interest rate immediately? Explain, why?
iii) If the policymakers care more about the low interest rates in the long-run, in which case (a, b or c) a decrease in money growth is appropriate? Explain, why?

If you want to compare two different investments, what should you calculate

The production manager of rordan corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st quarter 2nd quarter 3rd quarter 4th quarter units to be produced 10,800 8,500 7,100 11,200 each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour. required: 1. prepare the company’s direct labor budget for the upcoming fiscal year. assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,500 hours of work each quarter. if the number of required direct labor-hours is less than this number, the workers are paid for 2,500 hours anyway. any hours worked in excess of 2,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations