Barbara is a retailer of propane and propane accessories. As she designs her store layout for the new season, she recalls that a tax has just been removed from propane and propane products. If her store reflects the overall market, how should this knowledge influence her design?
a. She should make the propane area larger because more propane will be sold.
b. She should leave the propane area the same size because the same amount of propane will be sold.
c. She should make the propane area smaller because less propane will be sold.
d. She should close the propane area until a new tax is added to propane.
a. She should make the propane area larger because more propane will be sold.
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What is meant by the term "credit easing"?
A) It is a strategy which involves the extension of central bank lending to influence more broadly the proper functioning of credit markets and to improve liquidity. B) It is a strategy which involves keeping interest rates very low by providing substantial reserves for as long as is necessary to avoid deflation and encourage spending. C) It is a strategy which involves lowering the required reserve ratio and lowering the federal funds rate to encourage banks to increase loan creation. D) It is a strategy which involves allowing interest rates to rise slowly by providing substantial reserves for as long as is necessary to avoid inflation.
Briefly describe monetarism and the monetary growth rule
What will be an ideal response?