Chapter 8 thinking and understanding guided reading
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Is it possible to have a high inventory turnover and a high number of days’ sales in inventory? Discuss.
Suppose banks install automatic teller machines on every block and, by making cash readily available, reduce the amount of money people want to hold.
a. Assume the Fed does not change the money supply. According to the theory of liquidity preference, what happens to the interest rate? What happens to aggregate demand?
b. If the Fed wants to stabilize aggregate demand, how should it respond?
You decide to place $12,000 on deposit for 4 years. The bank offers you 6 percent compounded annually.
a. What is the total amount of money in the account at the end of 4 years? (2.4)
b. What value of simple interest would be necessary to have the same amount of money in the account at the end of 4 years? (2.3)
One option for altering the pattern of demand through aggregate planning is:
B. Subcontracting
C. Carrying Inventory
D. Using Overtime.
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the tendency to arrive at a solution after a period of time away from the problem.