Answer:
A. horizontal agreement in violation of the Sherman Act.
Explanation:
According to the Sherman Antitrust Act of 1890 it restricted the activities related to interstate commerce and the competition arise in the market place
The horizontal agreement is an agreement which is done between the business who are competing with each other in order to modify the competition for all the available competitors in the market
Therefore according to the given situation, the correct option is A.
A salesperson is listing a property in a mostly Hispanic neighborhood that is owned by Hispanic sellers. He advertises the property in several Spanish-language community newspapers, thinking the most likely buyers would already be renting in the neighborhood. What additional step would best help him avoid charges of discrimination
Answer:
The salesperson should advertise the property in Portuguese-language community newspapers as well in papers that circulate beyond the community/neighborhood
Explanation:
The additional step to be taken by the sales person to help him avoid charges of discrimination would be The salesperson should advertise the property in Portuguese-language community newspapers.
This is because in a Hispanic neighborhood there are two major languages that are most probably spoken and written there and they are Spanish and Portuguese hence the salesperson has to advertises in both languages.as well in papers that circulate beyond the community/neighborhood
Which subjects does the Aspire test assess?
Answer:
five subject areas: English, mathematics, reading, science, and writing
Measuring employment, unemployment, and labor force participation
Consider a small economy composed of six people: Dmitri, Frances, Jake, Latasha, Rosa, and Nick. Each person's employment status is described in the following table.
Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person's status as employed, unemployed, "not in the labor force" (if not in the civilian labor force but still part of the adult population), or "not in the adult population" if not in the civilian adult population.
Person
Dmitri is a 70-year-old professor. He teaches only one or two courses a year, but he's still pursuing an active research agenda.__________
Frances is a 26-year-old recent college graduate. She did not work for pay last week, but she had two job interviews.________
Jake is a 43-year-old accountant who has been out of work for almost a year. He became so discouraged that he gave up on his job search a couple of months ago.__________
Rosa is a 31-year-old science teacher who taught at West Valley Middle School last year. Due to budget cuts, she was laid off at the end of the school year. It's the summer now, and after a few weeks of vacation with her family, she is looking for a part-time job as a tutor.__________
Nick is a 20-year-old American Studies major at the University of Tennessee. It's summer now, and he is working as a lifeguard in Mobile, Alabama._________
Latasha is a 12-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $30 per week._______
Answer and Explanation:
The classification is as follows
a. The Dmirti is considered to be employed as she is working part-time
b.France is considered to be unemployed as currently he hasn't had a job he is still looking for a job
c. Jake is not in the labor force as he is so discouraged and due to which he gave up for job search
d. Rosa is considered to be unemployed as currently she has not have any job and currently she is looking for a job
e. Nick is to be considered as an employed as he is currently working
f. Latasha is to be considered in not in the adult population as she is just 12 year old student
Mountain Gear has been using the same machines to make its name brand clothing for the last five years. A cost efficiency consultant has suggested that production costs may be reduced by purchasing more technologically advanced machinery. The old machines cost the company $360,000. The old machines presently have a book value of $136,000 and a market value of $28,000. They are expected to have a five-year remaining life and zero salvage value. The new machines would cost the company $260,000 and have operating expenses of $19,000 a year. The new machines are expected to have a five-year useful life and no salvage value. The operating expenses associated with the old machines are $46,000 a year. The new machines are expected to increase quality, justifying a price increase, and thereby increasing sales revenue by $26,000 a year. Select the true statement.
A. The company will be $44,000 better off over the 5-year period if it replaces the old equipment.
B. The company will be $72,000 better off over the 5-year period if it keeps the old equipment.
C. The company will be $33,000 better off over the 5-year period if it replaces the old equipment.
D. The company will be $28,000 better off over the 5-year period if it replaces the old equipment.
Answer:
C. The company will be $33,000 better off over the 5-year period if it replaces the old equipment.
Explanation:
keep old machine:
operating expenses = $46,000 x 5 = $230,000
new machine:
purchase cost $260,000 - $28,000 = $232,000
operating expenses = $19,000 x 5 = $95,000
increase in revenue $26,000 x 5 = $130,000
if new machine is purchased, operating costs decrease by $135,000, revenues increase by $130,000, but investment outflows increase by $232,000 ⇒ $135,000 + $130,000 - $232,000 = $33,000
There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that:________.
Answer: If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that: depreciation in the US dollars in terms of pesos.
Explanation:
Inflation is a rate at which the mean price level of a group of selected goods and services in an economy increases over a period of time.
A rise in inflation means that the cost of raw materials increases. Then, workers demand higher wages to survive with the higher cost of living. This rise in prices can also cause greater volatility and uncertainty.It cause the depreciation of the value of currency.If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that depreciation in the value of US dollars in terms of pesos.
[Currency of Mexico = pesos]
Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 10% and a standard deviation of 16%. B has an expected rate of return of 8% and a standard deviation of 12%. What is the weight of Security A in the global minimum variance portfolio? Format your answer as a percent to 2 decimal places. (e.g. XX.XX% do not show % sign)
Answer:
0.43
Explanation:
The computation of the weight of Security A for the minimum variance portfolio is shown below:
Weight of security A is
= (Standard deviation of Security B) ÷ (Sum of the standard deviation of securities)
= (12%) ÷ (16% + 12%)
= (12%) ÷ (28%)
= 0.43
We simply applied the above formula so that the weight of Security A
A master budget ________. A. is only prepared for manufacturers as they are the only type of company with material purchases and work−in−process accounts. B. improves companies' market capitalization and evolves from both the investing and financing decisions C. is another name given to the financial budget D. is the initial plan of what the company intends to accomplish in the period and evolves from both the operating and financing decisions
Answer:
D. is the initial plan of what the company intends to accomplish in the period and evolves from both the operating and financing decisions.
Explanation:
When Dave, Dan, and Darwin lost their jobs during the recent recession, they pooled their resources, borrowed a little more, and bought a couple of houses to renovate. Darwin was a single guy with two other residential properties that he rented out. Dan and Dave had families with college-age children; they owned their homes, and Dan had a wife who worked at a professional job. All three were concerned about the risk involved in owning their own business, particularly the risk of losing personal assets. As their advisor, which of the following forms of business ownership would you recommend?
a) Limited liability company
b) Sole proprietorship
c) General partnership
d) Master limited partnership
Answer:
a) Limited liability company
Explanation:
Limited liability company is one of the specific types of business structure that is followed in the United States. This structure excludes the partners or the owners to possess the liabilities of the debts and liabilities of the company. This will help the partners limiting the liabilities. An agreement is made which helps in the protection of the liabilities. The owners' personal assets are separated from the asset of the company thereby reducing the debts and liabilities.
In the given excerpt, the best advice to be given to the partners, Dave, Dan, and Darwin as an advisor would be to adopt a limited liability company. This would help them not to keep their personal assets in stake for their business.
Claudia and Dayson are upper-level managers working for the same company, but they are located in different countries and come from different cultures. The company is implementing a new accounting process, so Jorge, the company CEO, invites Claudia, Dayson, and a few other managers to join him on a video conference. During the video conference, Claudia asks Jorge if the company will be creating a temporary help desk to ease the transition. Jorge replies, "I'll think about it and get back to you later." To Claudia, this means he will honestly consider the possibility and will send an email with his decision. To Dayson, Jorge's expression during this statement indicates that he is simply maintaining social harmony and that a help desk will not be created. Which of the following is most likely true about Claudia's and Dayson's cultures?
A) Claudia is from a high-context culture, and Dayson is from a low-context culture.
B) Dayson is from a high-context culture, and Claudia is from a low-context culture.
C) Both Claudia and Dayson are from high-context cultures.
D) Both Claudia and Dayson are from low-context cultures.
The correct answer is B) ) Dayson is from a high-context culture, and Claudia is from a low-context culture.
Explanation:
The term "high-context culture" is used to refer to cultures in which implicit communication, nonverbal elements, and context are important factors of communication. This implies many words and expressions in these cultures do not have a literal meaning. According to this, it is likely Dayson is from a high-context culture, considering he focused on the implicit message in Jorge's words rather than considering the message was literal.
On the other hand, in "low-context culture" elements such as implicit meaning or context are not frequently used, this means, most communication is literal and explicit. This shows Claudia is from a low-context culture because rather than thinking Jorge's answer was just a formalism or irony, she interpreted the message literally.
Consider the following payoff matrix facing two criminals. A: Confess A: Not Confess B: Confess A: 20yrs, B: 20yrs A: 50yrs, B: 2yrs B: Not Confess A: 2yrs, B: 50yrs A: 10yrs, B: 10yrs Their options are to confess or not to confess. Given this information:
Answer:
Both A and B have dominant strategies
Explanation:
Consider 2 players "A" and "B" in the specified game. Here, row player is "B" and column player is "A." If "B" chooses "Confess" then "Not Confess" is the optimal choice for "A," because 50 > 20, likewise if "B" chooses "Not Confess," then "Not Confess" is the optimal choice for "A," as 10 > 2. Therefore, we can see that the "Not Confess" is the dominant "A" strategy Similarly we can prove that the prevailing technique for "B" is "Not Confess" too.
Hence, we can see that both player 's approach is successful and from the above explanation, the 2nd option is correct.
Brayden is a general partner in a four-member limited partnership with two general and two limited partners. The partnership is silent with regard to the duration of the partnership, and Brayden wishes to retire.
A) Brayden may withdraw at any time, and the partnership continues.
B) Brayden must give six months' notice before being permitted to withdraw.
C) The other general partner and the limited partner with the largest liability must agree to his withdrawal.
D) The court must grant permission for Brayden to withdraw since the agreement was silent and the other partners and third-party customers of the partnership must be protected.
Answer:
A) Brayden may withdraw at any time, and the partnership continues.
Explanation:
A partnership is defined as a business venture where two or more people decide to pool their resources together in a business to achieve a particular objective.
Partnerships can be a complex relationship between participants where conflict may rise. To curtail this an agreement is usually written that states conditions for withdrawal, percentage of ownership, division of profit and loss, length of partnership, and partner authority.
In this scenario the partnership is silent on the duration of the partnership, so Brayden may withdraw at any time and the partnership will continue
Select all that apply GAAP and IFRS rules ______. require that the same method be used for both internal and external segment reporting create incentives for companies to use the contribution margin format in segment reporting require segmented financial data be included in annual reports create problems in reconciling internal and external reports
Answer:
The correct options are "A, C, and D".
Explanation:
GAAP becomes regarded as a relatively 'rules-based' management framework, seems to be the accounting technique used throughout the United StatesIFRS becomes quite 'principles-based', although this would be the accounting framework used in more than 110 countries throughout the globe.These allow the same approach being used for international and domestic section reporting, which generate reconciliation issues.
If the average amount of time a product goes without failing decreased by some amount, that product's availability could nevertheless be maintained at previous levels by __________ its __________.
Answer: reducing; time required for repair
Explanation:
The options to the question are:
A. increasing; reliability
B. reducing; time required for repair
C. reducing; reliability
D. reducing; reparability
E. increasing; time required for repair
If the average amount of time a product goes without failing decreased by some amount, that product's availability could nevertheless be maintained at previous levels by reducing its time required for repair.
When the time required for repair is reduced or at a minimal level, this will ensure that the product is always available.
Shelley has been hired as a marketing specialist at a large, international firm. On Shelley's first day of work, she attends an orientation session. Which of the following is LEAST likely to be addressed during Shelley's orientation program?
A) organizational structure
B) company policies and rules
C) compensation and reward system
D) daily and weekly task requirements
Answer:
D) daily and weekly task requirements.
Explanation:
In this scenario, Shelley has been hired as a marketing specialist at a large, international firm. On Shelley's first day of work, she attends an orientation session.
In the orientation session, what new employees are most likely to be briefed or talked to about is the organizational structure, company policies and rules and compensation and reward system. In human resources management, it is important to get new employees acquainted with the essential informations, rules, regulations, and guidelines that exist in an organization.
Hence, daily and weekly task is least likely to be addressed during Shelley's orientation program because she's not likely to commence her duties on the first day and her responsibilities or roles would be introduced to her by her functional or line manager.
In a producer/consumer relationship, the ________ portion of an application generates data and stores it in a shared object, and the ________ portion of an application reads data from the shared object.
A) consumer, producer
B) producer, consumer
C) outputter, inputter
D) None of the above.
Marcus is a self-employed marketing consultant. He is good at helping his clients with their marketing challenges; however, he is not keeping up with billing his clients regularly or keeping track of his hours. He feels like the time he spends on these functions is taking him away from activities where he has more talent and ability. His small business needs to bill clients quickly to keep the business running. What would you recommend Marcus do?
Answer:
To outsource the accounting function to another firm.
Explanation:
Outsourcing: Outsourcing refers to a process in which the business is able to perform its work with the help of an outside firm that means they provide the work to the other firm so that the company could able to save the cost and time
Since in the question it is given that Marcus spending much time and away him from that work where he has more talent and ability. So to fulfill the business needs the outsourcing option is the best recommended.
NEED HELP ASAP! Which of the following graphs represents the housing market with rent control in place?
Answer:
The first graph represents the housing market with rent control fully in place. In such a housing market, rent does not get out of hand before government intervention.
Explanation:
With the first graph, t the market could not reach the equilibrium point without the rent control stopping the market forces of supply and demand from exceeding a controlled price (rent). It shows the effect of price control on the market dynamics. With a control on the price (house rent by government), a certain price is imposed on the suppliers and consumers so that they do not go above the prescribed limit. This is what obtains in a controlled economy. On the other hand, in a free market, government does not intervene with control mechanisms, instead it allows the market forces to interact, enabling aggregate production and consumption of goods and services.
Background Info: Tom finds a second personal loan option. This loan would also require him to repay the principal in one lump sum after three years.
Loan Option B
Principal: $9,000
Type of Interest: Compound Interest
Interest Rate: 8%
Rate of Accrual: Once per year
Use the formula for annual compound interest.
A = P (1 + StartFraction r Over n EndFraction)nt
Remember, A refers to the total amount owed.
Calculate the total amount that Tom would repay.
$10,337
$11,337
$12,337
$13,337
Answer: $11,337
Explanation:
Given formula for annual compound interest.:
[tex]A=P(1+\dfrac{r}{n})^{nt}[/tex]
Given: Principal(P): $9,000
Type of Interest: Compound Interest
Interest Rate(r): 8% = 0.08 [In decimal]
Rate of Accrual: Once per year , i.e. n=1
Time (t)= 3 years
Put all the values in the above formula , we get
[tex]A=9000(1+\dfrac{0.08}{1})^{1\times3}\\\\=9000\left(1.08\right)^{3}\\\\= 9000(1.259712)\\\\\approx\$11,337[/tex]
Hence, the total amount that Tom would repay : $11,337
Answer:
option B
Explanation:
A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $30,000 a year, and take over a restaurant space that he owns and currently rents to his brother for $24,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his explicit costs?
Answer:
$106,000
Explanation:
The computation of explicit costs is shown below:-
Implicit costs = Paid amount in a year + Rent amount
= $30,000 + $24,000
= $54,000
Explicit costs = Expenses amount for food + Expenses amount for gas and electricity
= $50,000 + $2,000
= $52,000
Total amount = Implicit costs + Explicit costs
= $54,000 + $52,000
= $106,000
Therefore we have applied the above formula.
The cost to manufacture one unit of Killian Audio Products' best-selling hearing aid, the Zone, is $67.50. The CFO of the company determines that if the company expands the output of its biggest U.S. plant by 20 percent, the unit cost would be only $42.50. This analysis is based on the concept of
Answer:
Economies of scale
Explanation:
Economies of scale refers to reducing total costs per unit by increasing total output. All companies have certain fixed costs, some companies have higher fixed costs than others, but they always exist. When you are producing something, the cost equation is production costs = variable costs per unit + average fixed costs per unit.
Variable costs vary directly with output, while fixed costs do not, e.g. salaries can be fixed, depreciation, rent, interests, etc. The higher the output, the lower the average fixed cost per unit.
Also, sometimes variable costs can also decrease as total output increases. E.g. you can get higher discounts for purchasing larger quantities of materials and supplies.
In market A, a 4% increase in price reduces quantity demanded by 2%. In market B, a 3% increase in price reduces quantity demanded by 4%. The price elasticity of demand in market A and market B are considered______ and ______, respectively. Group of answer choices
Answer:
Price elasticity of market A = Inelastic
Price elasticity of market B = Elastic
Explanation:
Elasticity in the case of market A.
Given the percentage change in demand = 2%
Percentage change in price = 4%
Elasticty of demand = %Change in demand / %change in price
= 2 / 4
= 0.5 (Inelastic)
Elasticity in the case of market B.
Given the percentage change in demand = 4%
Percentage change in price = 3%
Elasticty of demand = %Change in demand / %change in price
= 4 / 3
= 1.33 (elastic)
Erin works for a dry-cleaning company that has a contract with the U.S. government. To save on cleaning fluid, her boss orders her to wash some clothes that are supposed to be dry-cleaned in a washing machine. When the courier hired to pick up the cleaned garments arrives, Erin tells him about her boss' actions. Erin tells no one else about what is going on and is later fired. Erin:
Answer: Erin is not protected by whistleblower statute
Explanation:
From the question, we are informed that Erin works for a dry-cleaning company that has a contract with the U.S. government and that in order to save on cleaning fluid, her boss orders her to wash some clothes that are supposed to be dry-cleaned in a washing machine.
We are further told that when the courier hired to pick up the cleaned garments arrives, Erin tells him about her boss' actions but Erin tells no one else about what is going on and is later fired.
This shows that the whistleblower statute didn't protect Erin because of her failure to inform the main party that was affected of the contract violation
A 70-year-old male pays $79.79 per month for his term life policy while an 80-year-old pays $349.30 per month. What is the percent of increase in premium costs from age 70 to age 80?
Answer:
337%
Explanation:
The percent of increase in premium costs from age 70 to age 80 is 337.77%.
Percentage based problem:What information do we have?
Amount paid in 70's age = $79.79
Amount paid in 80's age = $349.30
Extra amount paid in 80's age = $349.30 - $79.79
Extra amount paid in 80's age = $269.51
Percentage increase = [269.51 / 79.79]100
Percentage increase = [3.377]100
Percentage increase = 337.77% (Approx.)
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In the long run, monopolistically competitive firms: Group of answer choices charge prices equal to marginal cost have excess capacity produce at the minimum of average total cost have excess capacity and produce at the minimum of average total cost
Answer:
have excess capacity
Explanation:
As we know that in the case of monopolistically competitive firms, the output produced is less efficient as compared to the other market in the long run
Also
P = ATC
But
ATC > ATC or ATC > MC
This ATC > MC arise when there are differentiated products due to which the demand curve is downward sloping
Hence, the second option is correct
The pharmaceutical industry argues that because new drugs will not be developed unless heavy development costs can be recouped in later sales, the current 20 years of protection provided by patents should be extended in the case of newly developed drugs. However, in other industries new-product development continues despite high development costs, a fact that indicates that the extension is unnecessary.
Which of the following, if true, most strongly supports the pharmaceutical industry’s argument against the challenge made above?
(A) No industries other than the pharmaceutical industry have asked for an extension of the 20-year limit on patent protection.
(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete.
(C) There are several industries in which the ratio of research and development costs to revenues is higher than it is in the pharmaceutical industry.
(D) An existing patent for a drug does not legally prevent pharmaceutical companies from bringing to market alternative drugs, provided they are sufficiently dissimilar to the patented drug.
(E) Much recent industrial innovation has occurred in products—for example, in the computer and electronics industries—for which patent protection is often very ineffective.
Answer:
(B) Clinical trials of new drugs, which occur after the patent is granted and before the new drug can be marketed, often now take as long as 10 years to complete.
Explanation:
This option supports the pharmaceutical industry's claim because the research and development time of a new drug can be as long as half its patent life. Generally R&D on other industries takes a much shorter time, or at least not as much as half the patent's life.
Personally I would agree with the pharmaceutical industry if in exchange they would sell their drugs in the US at the same price as they are sold in Canada or Europe, or any other country in the world. The patent extension would benefit them and reduce the price of drugs by 80-90% in the US. I'm certain that the later would never happen, because the US is by far the largest cow milk for pharmaceutical companies because it is the only countries where the price of legal drugs is not regulated.
Price inflation:_______.
a. is relatively unimportant to individuals
b. is considered to be acceptable in the nation's quest for high levels of employment
c. courages investment by increasing the uncertainty about future returns
d. is almost always due to financing wars
Answer:
c. courages investment by increasing the uncertainty about future returns
Explanation:
Inflation refers to the increase in the price level of the goods
The price inflation reflects that there is a rise in the price of the goods and services over a particular period of time lets say for one year. It can arise when the raw material cost during the process of production increased that push the price in upward
It also increased the uncertainty with respect to the future returns through investment
Hence, the correct option is c.
A multiple-channel queuing system with a Poisson arrival rate and exponential service time has an average arrival rate of four customers per hour and an average service time of 18 minutes per customer. The minimum number of servers required to avoid an overloaded system is
Answer:
1.2
Explanation:
The computation of the minimum number of servers required to avoid an overloaded system is shown below:-
Average service time = Average service time ÷ number of minutes in a hour
18 min = 18 ÷ 60 per hr
= 0.3 hr per customer
Now for four customers, it would be
min servers = 4 × 0.3
= 1.2
So, the correct answer is min servers = 2 as servers cant be in fractions
Therefore we have applied the above formula.
role of a veterinary doctor in rearing livestock effectively
Answer:
As the world population grows and middleclass incomes rise, demand for livestock products increases—a consumption boom shaped by two decade of rapid economic growth and globalization. But there are certain high impact diseases that do not allow animal husbandry to flourish. Less dramatic diseases also impact the performance of farm animals, leading to lower production efficiencies and associated financial losses due to mortality and morbidity. Also, poor animal health in turn negatively influences animal welfare. In fact, studies have demonstrated that there is a direct correlation between the quality of livestock production and the provision of veterinary services.2 Given that food animals support the livelihoods and nourishment of almost a billion people, efforts should be directed at upholding food security.
In this regard, farm-oriented veterinary professionals should advise farmers and owners of livestock or managers of animal production systems on the most appropriate herd health management practices according to local and regional agro-ecological contexts. This extends beyond the treatment of animal illnesses or the implementation of preventive measures, such as strengthened biosecurity, programmed de-worming or vaccination, but also addresses housing, nutrition, cleaning, and environmental sanitation. The correct undertaking of latter practices will likely reduce the usage of veterinary medications and care, thereby reducing input and labor costs, which in turn positively influences farm productivity and profit margins.
The role of a veterinary doctor includes:
To diagnose animalsTo treat the diseases of animalsTo offer consultancy services to the owners of the animals, etc.A veterinary doctor is a professional who specialises in the care and treatment of animals.
A vet is in charge of the various aspects of an animal by ensuring that they live, eat healthy and also administer treatment when the animals are sick.
They can also perform surgery on an animal in severe situations that require medical emergency. They are important in the life of animals and their owners.
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Organizational culture refers to:_________.
a. the personal moral and ethical codes of ethics of its top management.
b. a written statement expressing its goals and objectives to be achieved through enacting a comprehensive strategic plan.
c. the fundamental, passionate, and enduring principles that guide its conduct over time.
d. the ethos of an organization that excludes its core values.
e. a set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
Answer:
e.A set of values,ideas,attitudes and norms of behaviour that is learned and shared among the members of an organisation.
Organizational culture refers to a set of values, ideas, attitudes, and norms of behavior that is learned and shared among members of organization. The appropriate response is option E.
What is Organizational culture?The general definition of organizational culture is all of a company's beliefs, values, and attitudes, and how these affect how its people behave. Whatever it's like for a customer to purchase from a business or for a supplier to cooperate with it is influenced by culture.
The definition of organizational culture pertains to the structure, values, sociology, and psychology of an organization, such as a business or non-profit. Philosophy, beliefs, expectations, and experiences are a few examples of organizational culture.
Hence, the appropriate response is option E.
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When the government pursued a "tight money" policy during the Great Depression, it caused aggregate demand to decrease because it: Choose one: A. reduced consumer spending and investment spending. B. caused tax rates to decrease. C. led to very high rates of inflation, which eroded household spending. D. caused a rapid decline in exports to other countries. E. led to an increase in
Answer:
A). Reduced consumer spending and investment spending.
Explanation:
'Tight money' policy is elucidated as the contractionary monetary policy adopted by central banks to decrease the money supply in the market which helps in reducing consumer spending and curb inflation in the economy.
As per the question, when the government adopted this 'tight money' policy during the Great Depression, it led to 'a reduction in consumer spending as well as a reduction in spending on investment.' It led to the worsening downturn of the economy as this steep fall in consumer spending decreased the demand significantly, caused major unemployment, and led millions of investors to take their money back, and eventually, it led to the longest-running recession in the modern history. Thus, option A is the correct answer.