Sample final exam b Essay Example

Sample final exam b Essay For credit, you must show work on written questions. For example you must show calculations and not just the answer. Keep your eyes on your own exam. Academic honesty is expected. Relax and Good Luck! Formulas: Federal Funds Rate Target = Inflation Rate + Equilibrium Real Fed Fund Rate 1/2(inflation gap) + 1/2(output gap) Page 1 of 9 Multiple Choice Questions (60 points total, 2 points per question) 1) The Depository Institutions Deregulation and Monetary Control Act of 1980 A) established higher reserve requirements for nonmember than for member banks. B) established higher reserve requirements for member than for nonmember banks. C) abolished reserve requirements. D) established uniform reserve requirements for all banks. 2) The case for Federal Reserve independence does not include the idea tm A) political pressure would impart an inflationary bias to monetary policy. Politically insulated Fed would be more concerned with long-run objectives and thus be a defender of a sound dollar and a stable price level. C) policy is always performed better by an elite group such as the Fed. D) a Federal Reserve under the control of Congress or the president might mall « the so-called political business cycle more pronounced. Members Of Congress are able to influence monetary policy, albeit indirectly, through their ability to A) withhold appropriations from the Boar of Governors. B) with hold appropriations from the Federal Open Market Committee. C) propose legislation that would force the Fed to submit budget requests to Congress, as must other government agencies. D) instruct the General Accounting Office to audit th e foreign exchange market functions of the Federal Reserve. 4) Excess reserves are equal to A) total reserves minus discount loans. B) vault cash plus deposits with Federal Reserve banks minus required reserves. We will write a custom essay sample on Sample final exam b specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Sample final exam b specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Sample final exam b specifically for you FOR ONLY $16.38 $13.9/page Hire Writer C) vault cash minus required reserves. D) deposits with the Fed minus vault cash plus required reserves. 5) Spoof that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, one million dollars in required reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has vault cash. A) two B) eight C) nine D) ten million dollars in 6) When an individual sells a $100 bond to the Fed, she may either deposit the check she receives or cash it for currency. In both cases A) reserves increase. B) high-powered money Increases. C) reserves decrease. D) high-powered money decreases. Page 2 of 9 in market interest rates relative to the discount rate will cause discount borrowing to A) fall; increase B) rise; decrease C) rise; increase D) fall; remain unchanged 8) If the Fed injects reserves into the banking system and they are held as excess reserves, then the money supply A) increases by only the initial increase in reserves. B) increases by only one-half the initial increase in reserves. C) increases by a multiple of the initial increase in reserves. D) does not change. 9) If the required reserve ratio is one-third, currency in circulation is $300 lion, checkable deposits are $900 billion, and there is no excess reserve, then the monetary base is A) $300 billion. B) 5600 billion. C) $333 billion. D) $667 billion. 10) During the 2007-2009 financial crisis the currency ratio A) increased sharply. B) decreased sharply. C) increased slightly. D) decreased slightly. 1 1) Which of the following is NOT an argument for the Federal Reserve paying interest on excess reserve holdings? A) Paying interest reduces the effective tax on deposits. B) Paying interest will help in the implementation of monetary policy. C) Paying interest will help the Federal Reserve have more control of the amount f discount loans. D) Paying interest increases the capacity of the Feuds balance sheet which will make it easier to address financial crises. 12) In the market for reserves, when the federal funds interest rate is below the discount rate, the supply curve of reserves is A) vertical. B) horizontal. C) positively sloped. D) negatively sloped. 3) The interest rate charged on overnight loans of reserves between banks is the A) prime rate. B) discount rate. C) federal funds rate. D) Treasury bill rate. Page 3 of 9 14) If float is predicted to decrease because of unseasonably good weather, he manager of the trading desk at the Federal Reserve Bank of New York will likely conduct a A) defensive; sale open market B) defensive; purchase C) dynamic; sale D) dynamic; purchase 1 5) The dis count rate is kept of securities. The federal funds rate because the F-De prefers that A) below; banks borrow reserves from each other. B) below; banks borrow reserves from the Fed. C) above; banks borrow reserves from each other. D) above; banks borrow reserves from the Fed. 1 6) From before the financial crisis began in September Of 2007 to when the crisis was over at the end of 2009, the huge expansion in the Feuds balance whet and the monetary base did not result in a large increase in monetary supply because A) most of it just flowed into holdings of excess reserve. B) the Fed also increased the required reserve ratio C) the Fed also conducted open market sales. D) the discount loan decreased. 7) If the unemployment rate is higher than the natural rate of unemployment, based on the Phillips curve, A) inflation will be higher. B) inflation will be lower. C) inflation expectations will be higher. D) inflation expectations will be lower. 18) One of the problems with higher inflation is A) higher economic growth. B) difficulty predicting relative price movements. C) larger decreases in inflation expectations. D) sma ller movements in equilibrium real interest rates. 19) Which set of goals can, at times, conflict in the short run? A) High employment and economic growth. ) Interest rate stability and financial market stability. C) High employment and price level stability. D) Exchange rate stability and financial market stability. 20) The decision by inflation targets to choose inflation targets reflects the concern Of monetary policymakers that particularly gem inflation can have substantial negative effects on real economic activity. A) below; high B) below; low C) above; high D) above; low Page 4 of 9 21) The problems of raising the level of the inflation target include A) if the zero-lower-bound problem is rare, then the benefits of a higher inflation target are not very large. B) the costs of higher inflation in terms of the distortions it produces in the economy are high. C) it is more difficult to stabilize the inflation rate at a higher targeting level. D) all of the above. 22) Which of the following is a potential operating instrument for the central bank? A) The monetary base B) The MI money supply C) Nominal GAP D) The discount rate 3) According to the Taylor principle, when the inflation rate rises, the nominal interest rate should be Increase. A) increased; more B) increased; less C) decreased; more D) decreased; less by than the inflation rate 24) The monetary transmission mechanism that links monetary policy to GO through real interest rates and investment spending is called the A) traditional interest-rate channel. B) Dobbins q theory. C) wealth effects. D) cash flow channel. 25) If monetary policy can influence prices and conditions in markets, then it can affect spending through channels other than the traditional interest-rate channel. A) asset; labor B) asset; credit C) commodity; labor D) commodity; credit 26) During the Great Depression, Dobbins q A) rose dramatically, as did real interest rates. B) fell to unprecedented low levels. C) stayed fairly constant, in contrast to most other economic measures. D) rose only slightly, in spite of Hovers attempts to prop it up. Page 5 of 9 27) Because of the presence of asymmetric information problems in credit markets, an expansionary monetary policy causes a which the adverse selection problem, thereby in net worth, increased lending to finance investment spending. A) decline; increases; encouraging B) rise; increases; discouraging C) rise; reduces; encouraging D) decline; reduces; discouraging 28) An expansionary monetary policy raises firms cash flows by interest rates. A) lowering real B) lowering nominal C) raising real D) raising nominal 29) The Federal Reserve has been preemptive because of the changing view that monetary policy has to be A) more; forward B) more; backward C) less; forward D) less; backward looking. 0) Large fluctuations in money supply growth and smaller fluctuations in the federal funds rate between October 1 982 and the early sass indicate that the Fed had shifted to 8) embowered reserves C) excess reserves D) required reserves Page 6 of 9 as an operating target. A) borrowed reserves Written Questions (60 points total, 20 points per question) Written Queerest #1 (20 points total) Suppose the following T-accounts represent The Central Bank and The Regular Bank (billions of dollars). The central Bank T-Account Assets Liabilities Government $BIBB Currency $BIBB Securities in Circulation Reserves $BIBB The Regular Bank T-Account $1 BOB Checking $BIBB Deposits Government Loans Equity Capital $BIBB a) Suppose the reserve requirement is 10%, calculate the money multiplier. B) Suppose The Regular Bank decided to no longer hold excess reserves. Draw new Discounts showing one possible initial change from this. Calculate the money multi pliers. C) If The Central Bank decides to rent a helicopter and drop $508 in newly printed money on the population, what would happen to the money supply ultimately based on part a)? What would happen based on part b)? Page 7 of 9 Written Question #2 (20 points total) F-or each part, Start by supposing the Federal Reserve current has a discount rate of 6% and the equilibrium federal funds rate is 5%, and the Fed pays 5% on excess reserves. Also, assume that there are currently SOB borrowed reserves. Sing a supply and demand diagram show the effects of an open market purchase and briefly explain the effect on the federal funds rate, non- borrowed reserves, and borrowed reserves (up/down/stay the same).

Reed College Essays - Reed College, Reed, Second Class Citizen

Reed College Essays - Reed College, Reed, Second Class Citizen Reed College How did you first become interested in Reed and why do you think Reed might be an appropriate place, both socially and academically, to continue your education? I could tell you a heartfelt, sentimental, poignant story about first seeing a Reed College refrigerator magnet (my uncle got it at a reunion, I think) and feeling first deep emotions stirring somewhere inside my spleen. Or I could meticulously paraphrase the numerous brochures and articles about Reed that I have perused. Yet another option would be to rent a small airplane and skywrite, "I want to go to Reed," in colorful pollutants. And I probably would resort to one of these strategies, had I not some real incentives to attend Reed College. They are based on what I have learned from The Princeton Review, general knowledge, conversations I have overheard, and other miscellaneous tidbits of information sent to me by friends and relatives. First of all, I must express my admiration to the people who have decided that education is, after all, the purpose and responsibility of a college and established the precedence of academics over sports at Reed college. I'd like to attend a school where I, a debater, will not be viewed as a second-class citizen by football players. Secondly, the notoriety of great educational standards has reached me all the way in Vancouver (OK, so it is only across the river) and enticed, attracted, and urged me to apply to Reed. Rumors of the "side effects" of avalanches of homework and sleepless nights have crept here, too, but I'm up to the challenge. After two years of juggling high school, college, and extracurricular activities, receiving assignments only at one place just might be paradise. Lastly, Reed's geographical location is just like pretty wrapping paper and a big red bow on a present that's already great ( forgive the allusions to the Haagen-Dasz commercials). Living in Portland, I would be simultaneously away from my family in Vancouverand as close as I might need to be! Not only would I have the opportunity to become better acquainted with Portland, but also to judge at debate tournaments for my old high school! The possibilities are mouthwatering. Jokes aside, I believe that attending Reed will be one of the most sensible things I might do in my whole life. Learning is what I do best, and at Reed I will have the perfect opportunity to excel at it.

Short Biography of Hugo de Vries

Short Biography of Hugo de Vries Hugo Marie de Vries was born on February 16, 1848, to Maria Everardina Reuvens and Djur Gerrit de Vries in Haarlem, The Netherlands. His father was a lawyer who later went on to serve as the Prime Minister of The Netherlands in the 1870s. As a young child, Hugo quickly found a love of plants and even won several awards for his botany projects while he attended school in Haarlem and The Hauge. de Vries decided to pursue a degree in botany from Leiden University. While studying at the college, Hugo became intrigued by experimental botany and Charles Darwins Theory of Evolution and Natural Selection. He graduated in 1870 from Leiden University with a Doctorate in botany. He taught for a short time before attending Heidelberg University to study Chemistry and Physics. However, that adventure only lasted only  about a semester before he went off to Wurzberg to study plant growth. He went back to teaching botany, geology, and zoology in Amsterdam for several years while returning to Wurzburg on his vacations to continue his work with plant growth. Personal Life In 1875, Hugo de Vries moved to Germany where he worked and published his findings on plant growth. It was while he was living there that he met and married Elisabeth Louise Egeling in 1878. They returned to Amsterdam where Hugo was hired as a lecturer at the University of Amsterdam. It was not long before he was elected as a member of the Royal Academy of the Arts and Sciences. In 1881, he was given full professorship in botany. Hugo and Elisabeth had a total of four children - one daughter and three sons. Biography Hugo de Vries is best known for his work in the field of genetics as the subject was in its so-called infancy stages. Gregor Mendels findings were not well known at the time, and de Vries had come up with some very similar data that could be put together with Mendels laws to create a more fully developed picture of genetics. In 1889, Hugo de Vries hypothesized that his plants had what he called pangenes. Pangenes are what is now known as genes and they carried the genetic information from one generation to the next. In 1900, after Gregor Mendel published his findings from working with pea plants, de Vries saw that Mendel had discovered the same things he had seen in his plants as he wrote his book. Since de Vries did not have Gregor Mendels work as a starting point for his experiments, he instead relied on writings by Charles Darwin who hypothesized how traits were passed down from parents to offspring generation after generation. Hugo decided that the characteristics were transmitted via some sort of particle that was given to the offspring by the parents. This particle was dubbed a pangene and the name was later shortened by other scientists to just gene. In addition to discovering genes, de Vries also focused on how species changed because of those genes. Even though his mentors, while he was at University and worked in labs, did not buy into the Theory of Evolution as written by Darwin, Hugo was a big fan of Darwins work. His decision to incorporate the idea of evolution and a change in species over time into his own thesis for his doctorate was met with a lot of resistance by his professors. He ignored their pleas to remove that part of his thesis and successfully defended his ideas. Hugo de Vries explained that the species changed over time most likely through changes, which he called mutations, in genes. He saw these differences in wild forms of evening primrose and used this as evidence to prove that species did change as Darwin said, and probably on a much quicker timeline than what Darwin had theorized. He became famous in his life due to this theory and revolutionized the way people thought about Darwins Theory of Evolution. Hugo de Vries retired from active teaching in 1918 and moved to his large estate where he continued to work in his large garden and study the plants he grew there, coming up with different discoveries he published. Hugo de Vries died on March 21, 1935, in Amsterdam.

Truth About Food Labels Assignment Example | Topics and Well Written Essays - 1000 words

Truth About Food Labels - Assignment Example So lets study five categories of deceptive food tags one can encounter to the grocery store, to guarantee one does not play into the hands of vendors. Animal food products like meat and eggs, branded as "natural" must be minimally processed and comprise non-natural elements. Nevertheless, the natural label does not consist of any ideals concerning farm practices and simply applies to processing of meat and egg products. There are no principles or guidelines for the labeling of natural food products if they do not contain meat or eggs." That pretty much explains it all and expounds how Frito-Lay, owned by PepsiCo (PEP) , promotes "all-natural" Cheetos by lightly redefining the term as "No additives, no non-natural flavors, and no synthetic colors." Unless supervisory bodies step up administration, the industry will have to police itself. There is hope for improvement, however. Increasing pressure -- together with lawsuits -- mandated PepsiCo to alter its "Simply Natural" chip merchandises to "Simply" without altering ingredients. In August 2013, the U.S. Food and Drug Administration came up with a final rule defining the term for voluntary use. According to the rule, labels were to be brought to compliance defining food as either gluten free; or does not comprise an ingredient that is gluten-having grain, derived from a gluten-containing grain that has been processed to eliminate gluten, if the usage of that ingredient leads in the manifestation of 20 parts per million (ppm) or more gluten in the food. Also, any inevitable presence of gluten in the food must be less than 20 ppm." It is shocking to realize that Dominos Pizza offers gluten-free crusts that agree with the new canons. Unfortunately, one has to lob most other pizza offerings aside.  

Investigate a social or business issue using statistical techniques Assignment

Investigate a social or business issue using statistical techniques (including Excel graphs), analysis and interpretation - Assignment Example ..9 Appendix †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.10 STATISTICAL TECHNIQUES, ANALYSIS, AND INTERPRETATION, PRODUCT DIFFERENTIATION Abstract This report discusses practical application of statistical techniques. Using secondary data, the paper investigates contents of cigarette brands with the aim of investigating product differentiation. The analysis uses both descriptive and inferential statistics to investigate product differentiation. Introduction Product differentiation is one of the emerging marketing strategies among competing business enterprises. It refers to the production of a unique commodity in the market. The underlying factor in product differentiation is that consumers must be able to distinguish the product from others in the market. The distinction may be with respect to either quality, features or even price. As a market strategy, differentiation has been used to develop brand imaging in products from organizations. Bragg explains that product differentiation is a strong marketing tool that allows firms to capture and control their customers. This is because once consumers have been attracted into a differentiated product or service they become attached to it. This in turn allows sellers to manipulate their markets for profit maximization. The underlying principle is that increasing prices of highly differentiated products does not have significant effects on the demand for such products, a feature that allows sellers to use product differentiation as a tool to market capture and profit maximization (Bragg, 2011, p. 26). Similarly, a firm can differentiate its products as a strategy for remaining competitive among other firms in the industry. Consumers’ dynamic tastes and preference may negatively shift the demand for a particular product and differentiation theref ore allows organizations to develop products that will continually meet their customer’s needs. This helps firms to retain their market control and effectively manage their profit margins. A company that frequently introduces differentiated products in the market also increases its sales because consumers will always be interested in testing the new brands (Bragg, 2011, p. 26). Increasing competition in markets and the need to penetrate into the markets and maximize profits could however lead to virtual differentiation of products with the aim of taking advantage of consumers’ ignorance. Firms may for example claim that their products are unique in content mix and hence quality while such distinctions may not be real. Built loyalty and trust between organizations and their customers together with euphoria may then leads to perception and conviction over existence of differentiation that might not exist or might not be significant. A more practical approach through stat istical analysis can however be employed in order to evaluate existence of differentiation as may be claimed by manufactures. Statistical tools can for instance be used to compare contents

Essay --

Frank Carellini Professor Joseph J. Ellis Honors 290C Death Of A Financier: From Establishing America’s Credit To Financing The Revolution To Debtor’s Prison Amer ·i ·can noun É™-ˈmer-É™-kÉ™n, -ˈmÉ™r-, -ˈme-rÉ™- : A person born, raised, or living in the U.S. An American is defined as a person born, raised or living in the U.S. There are sacred grounds from which American roots clearly stem. There are words that instantaneously come to our minds when our American pride is questioned or insulted. Financial stability is not one of them. Passionate, idiosyncratic, united, diplomatic, relentless: these are the synonyms of American and our associated founding. But not â€Å"Financially Stable.† Actually most â€Å"Americans† are disgusted by one or more facets of the American financial system, bellowing at its corrupt, dishonest methods and lack of sympathy for our people. We are often quick to dismiss money and business as unethical creatures. It is easy to praise controversial soldiers and philosophical demigods and wooden teeth and cherry trees, when relishing in America’s emotional and inspiring foundation. Despite its stagnant reputation as a crippling agent, â€Å"Finance† and the almighty dollar (or should I say the almighty â€Å"Morris note†) once held a genuine place in the fight for American independence and maturity as a newly-birthed nation. Money was once a note of trust, a building block for international commerce and relationships. As America was born, commerce did not only translate into profits, but it was the beginning of an international web that would be the site of synthesis for social, political and economic paradigms. In the wake of America’s foundation, Robert Morris personalized currency. Coupling transactions with handshakes and... ...f financially networking. The simple misappropriation of funds tore his life apart. Money is a perception game. With money one can easily be characterized by arrogance and selfishness; without it, desperation and despair. America is a place of commerce and we need to be. There has been an everlasting parting from the original isolationist policies, instituted by Washington. I have reason to believe his close friend Robert Morris, is the reason for our global success. The first official act of Hamilton, as Secretary of the Treasury, was to recommend that the domestic and foreign debt be paid, dollar for dollar. When the paper containing this recommendation was read before Congress, it thought that the new Secretary of the Treasury had gone mad. How was a nation of less than 4,000,000 of people to voluntarily assume a debt of $75,000,000! In The Financier, I Trust.

Identify and Explain Two Reasons for an Increase in Cohabitation [17]

Identify and explain two reasons for an increase in cohabitation [17] One reason is changing social attitudes. Religion regarded cohabitation as ‘living in sin’, but today there is less shame attached to it. Barlow et al found increasing acceptance of cohabitation. This shows that the change in religions social attitude, cohabitation is accepted more, leading to an increase in cohabitation. Some people prefer love that focuses of on intimacy, closeness and emotion rather than the duties of marriage.Giddens argues that there has been a trend towards confluent love. This love focuses on the intimacy, closeness and emotion of a relationship, rather than the feelings of obligation and duty that is in vows at marriage. When a marriage no longer has confluent love, the relationship is likely to end. This shows that monogamy may start being replaced by serial monogamy, in which cohabitation is most suited to. However, the ONS found that 60% of cohabiting couples will eventually end in marriage showing that monogamy can often replace serial monogamy.There is less pressure to follow traditional norms and values. Beck and Beck-Gernshiem argue that individualism has led to changing attitudes towards cohabitation and marriage. There is less pressure to follow the norms and values around love and relationships set by family, religion or culture. This shows that the change in attitudes has led to people making their own decision about whether they marry or cohabitate. The acceptance of sex outside marriage has made it more likely that cohabitation will occur.Allan and Crow argue that effective contraception has made it possible for partners to cohabit without fear of pregnancy. This alongside the acceptance of sex before marriage means cohabitation without marriage is likely to occur. This shows that the change in social attitudes towards sex outside of marriage has led to an increase in cohabitation. Another reason is the decline in the popularity of marriage. The drawbacks that come with marriage often turn people away from marriage.McRae found cohabitation had been chosen over marriage because marriage was seen as limiting personal freedom and independence, offering no advantages over cohabitation. This shows that more people started a cohabiting relationship rather than a marriage, leading to a decline in marriage, but a rise in cohabitation. Some people find it better to have more sexual partners than to get married. Patricia Morgan argues that cohabitation is part of a worrying trend in which marriage is going out of fashion and the family is in decline.It is a sign of an increasing trend to have more sexual partners and change them frequently than to commit to stable married relationships. This shows that cohabitation is becoming more popular than marriage because people are starting to want more than just one partner for life. Cohabitation is an alternative to marriage Chandler argues cohabitation is a relatively stable alternative to marriage and that the length of time couples spend together is expanding. This shows that it is a good alternative to marriage, but with more freedom.However, the New Right claim that cohabitation is less stable than marriage and can lead to negative consequences. Fear of divorce could lead to more people cohabitating, rather than getting married. The ONS showed that 45% of marriages ended in divorce, which could lead to people not wanting to get married and preferring to cohabit instead. This shows that the fear of divorce can turn people away from marriage and turning to cohabitation, which declines the popularity of marriage and increases cohabitation. Identify and Explain Two Reasons for an Increase in Cohabitation [17] Identify and explain two reasons for an increase in cohabitation [17] One reason is changing social attitudes. Religion regarded cohabitation as ‘living in sin’, but today there is less shame attached to it. Barlow et al found increasing acceptance of cohabitation. This shows that the change in religions social attitude, cohabitation is accepted more, leading to an increase in cohabitation. Some people prefer love that focuses of on intimacy, closeness and emotion rather than the duties of marriage.Giddens argues that there has been a trend towards confluent love. This love focuses on the intimacy, closeness and emotion of a relationship, rather than the feelings of obligation and duty that is in vows at marriage. When a marriage no longer has confluent love, the relationship is likely to end. This shows that monogamy may start being replaced by serial monogamy, in which cohabitation is most suited to. However, the ONS found that 60% of cohabiting couples will eventually end in marriage showing that monogamy can often replace serial monogamy.There is less pressure to follow traditional norms and values. Beck and Beck-Gernshiem argue that individualism has led to changing attitudes towards cohabitation and marriage. There is less pressure to follow the norms and values around love and relationships set by family, religion or culture. This shows that the change in attitudes has led to people making their own decision about whether they marry or cohabitate. The acceptance of sex outside marriage has made it more likely that cohabitation will occur.Allan and Crow argue that effective contraception has made it possible for partners to cohabit without fear of pregnancy. This alongside the acceptance of sex before marriage means cohabitation without marriage is likely to occur. This shows that the change in social attitudes towards sex outside of marriage has led to an increase in cohabitation. Another reason is the decline in the popularity of marriage. The drawbacks that come with marriage often turn people away from marriage.McRae found cohabitation had been chosen over marriage because marriage was seen as limiting personal freedom and independence, offering no advantages over cohabitation. This shows that more people started a cohabiting relationship rather than a marriage, leading to a decline in marriage, but a rise in cohabitation. Some people find it better to have more sexual partners than to get married. Patricia Morgan argues that cohabitation is part of a worrying trend in which marriage is going out of fashion and the family is in decline.It is a sign of an increasing trend to have more sexual partners and change them frequently than to commit to stable married relationships. This shows that cohabitation is becoming more popular than marriage because people are starting to want more than just one partner for life. Cohabitation is an alternative to marriage Chandler argues cohabitation is a relatively stable alternative to marriage and that the length of time couples spend together is expanding. This shows that it is a good alternative to marriage, but with more freedom.However, the New Right claim that cohabitation is less stable than marriage and can lead to negative consequences. Fear of divorce could lead to more people cohabitating, rather than getting married. The ONS showed that 45% of marriages ended in divorce, which could lead to people not wanting to get married and preferring to cohabit instead. This shows that the fear of divorce can turn people away from marriage and turning to cohabitation, which declines the popularity of marriage and increases cohabitation.