HELP - 2 QUESTIONS?
Lowering the discount rate can promote full employment because employees are more likely to apply for multiple jobs employees are able to get better offers for hourly wages companies are more likely to expand and hire more workers companies are less likely to sign up employees for unemployment insurance Question 2 (Multiple Choice Worth 5 points) [04.01 MC] Which of the following circumstances usually accompanies a period of economic expansion? Falling production High inflation Low GDP Rising unemployment
@PixieDust1 , WALK ME THRU THESE
Q1:- I'd say C: companies are more likely to expand and hire more workers. The discount rate is the interest rate at which banks borrow from the monetary authority (in the case of the US: the federal reserve). If it's lowered, banks can readily boost their reserves should they fall short. If this condition exists, interest rates will be lower for a variety of loans and banks may be more willing to lend. Rate Q2:- High inflation
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