Essay on Final Eco/372

In order to assess Calaveras’ value, I calculated the free cash flow from 1994 to 1998. The free cash flow from each year derived from adding Earnings before Interest and Taxes,

4. For the most recent year, what is the amount of cost of goods sold in the

15. What is the primary role of the Federal Reserve? What is the significance of this role?

A cost of goods is what it should spend to make products. At the start of each period budget of production will be ready, using cost of goods and predicted production quantities. At the end of each period a variance report is prepared to compare the budget costs with the actual costs.

(cost of goods manufactured in 2008/ sales value for units produced in 2008) * ending inventory 2008

The sales budget is prepared by multiplying the expected unit sales volume for each product by its anticipated unit-selling price. As reflected in Exhibit A noted below and included in the overall Peyton Approved budget worksheet included in Appendix A, Peyton Approved expects sales volume to be 18000, 22000 and 20000 units in the month of July, August and September respectively. The budgeted sales in August exceeded July's sales units by 4000 units, however, sales declined in September by 2000 units from August. Peyten Approved budgeted sales price per units for the quarter was based on a sales price of $18 per unit. Thus, budgeted total dollars per month are

In 1913, the Federal Reserve System was enacted, it has three primary objectives; eradicating the “pyramiding” of reserves in New York City and substitute it with a polycentric system of twelve reserve banks, which will help the banks with a more seasonal

Congress has handed over the responsibility for monetary to the Federal Reserve, also known as the Fed, but retains oversight responsibilities in order to ensure that the Federal Reserve adheres to the statutory mandate of stable prices, moderate long-term rates of interest, as well as, maximum employment (Labonte, 2014). The responsibilities of the Fed as the country’s central bank are classified into four: monetary policy, supervision of particular types of banks and financial institutions for soundness and safety, provision of emergency liquidity through the function of the lender of last resort, and the provision of services of the payment system to financial institutions, as well as, the government (Labonte, 2014). The monetary role of the Federal Reserve necessitates aggregate demand management. The Federal Reserve defines monetary policy as the measures it undertakes in order to influence the cost and availability of credit and money to enhance the objectives mandated by Congress, which is maximum sustainable employment and a stable price level (Appelbaum, 2014). Since the expectations of businesses as capital goods purchasers and households as consumers exert an essential influence on the main section of spending in America, and the expectations are influenced in essential ways by the Federal Reserve’s actions, a wider definition would involve the policies, directives, forecasts of the economy, statements, and other actions by the Federal Reserve, particularly those

Calculate cost of goods sold for the year. (Omit the "$" sign in your response.)

According to the last Federal Reserve press release, the decision to raise the federal funds rate (3/4 to 1 percent) is due to the view of realized and expected labor conditions and inflation. The Federal Open Market Committee’s goal is to foster maximum employment and price stability. Their expectations are that economic activity will expand at a moderate pace, labor market conditions will strengthen a little further, and that inflation will stabilize around 2 percent over the medium term. Near-term risks to the economic outlook seem roughly balanced as well. The FOMC will continue to monitor global economic and financial developments and well as inflation

was going through some rude awakenings. If the U.S monetary policy was more stringent and

The Federal Reserve’s three instruments of monetary policy are open market operations, the discount rate and reserve requirements. Open market operations involve the buying and selling of government securities. “Open market” means that the Fed doesn’t decide on its own which securities it will do business with on a particular day. Rather, the choice emerges from an “open market” in which the various securities dealers that the Fed does business with compete on the basis of price. Open market operations are flexible, and thus, the most frequently used tool of monetary policy. The discount rate is the interest rate charged by Federal Reserve Banks to depository institutions on short-term loans. Reserve requirements are the portions of deposits that banks must maintain either in their vaults or on deposit at a Federal Reserve Bank.

Cost of Goods Sold: Cost of Goods Sold is inextricably linked to sales, and so the most effective way to project it is to use an average from years past. For the past five years,

B) Develop a model showing the importance and effects of Aggregate Demand on the overall economy.

1. Answer the end-of-chapter Question 2 in Chapter 3. (4 marks) 2. Use the economy described in the end-of-chapter Question 2 in Chapter 3, answer the following: (6 marks) (a) What is the value of marginal propensity to consume (MPC)? (b) What is the value of marginal propensity to save (MPS)? (c) Find the multiplier and autonomous spending. (d) Solve for private saving and public saving. 3. Answer the end-of-chapter Question 3 in Chapter 3. (6 marks) [the textbook should be the 5th international edition updated. However, as for Problem Set1, if the student uses the 5th edition or other editions, as long as the student answers the questions using correct methods, it is fine. But in future, we only use the 5th international updated edition.]