All categories

2 years ago

If the money multiplier is 3 and the Fed wants to increase the money supply by $900,000, it could Group of answer choices

1 answer:

6 0

Fed buy $300,000 worth of bonds, if the money multiplier is 3 and want to increase the money supply by $900,000. As the formula of the money multiplier is change in total money supply upon change in total monetary base.

<h3>What is money multiplier?</h3>

The multiplier effect is a term used in economics to describe the proportional increase or decrease in final revenue that occurs as a result of a capital injection or withdrawal.

In effect, it calculates the influence of a change in economic activity, such as investment or spending, on a company's total economic output.

Thus, Fed buys $300,000 worth of bonds.

For further details about the money multiplier, click here:

brainly.com/question/23860968

#SPJ1

You might be interested in

The economic definition of money is__________.A. A good that has intrinsic value.B. Anything authorized by the government to be

Citrus2011 [14]

Answer:

The correct answer is option D.

Explanation:

Money can be defined as any asset that is generally accepted by people in exchange for goods and services. The basic function of money is to act as a medium of exchange.

It reduces the transaction cost in exchange for goods and services by eliminating the double coincidence of wants.

Money can be of different types such as commodity money, fiat money, etc.

Other functions of money are to act as a store of value and unit of account.

4 0

3 years ago

If julio ruiz has an income of $30,000, pays $6,000 in rent, $1,200 in utilities, and $5,000 in taxes per year, is disposable in

Taya2010 [7]

Disposable income is defined as any and all income that one has less the taxes and other mandatory payments one must make. In Julio's case, this would be the $30,000 he has earned less the $5,000 he pays in taxes yearly. The rent and utilities would not be considered, leaving a disposable income value of $25,000.

8 0

4 years ago

In alphabetical order below are current asset items for Roland Company’s balance sheet at December 31, 2020.Accounts receivable

leva [86]

Answer:

Total Current assets = $622,000

Explanation:

Balance sheet (For the year ending)

Current asses Amount

Accounts receivable $220,000

Cash $83,000

Stock $275,000

Finished goods $89,000

Raw materials $94,000

W.I.P $92,000

Prepaid expenses $44,000

Total Current assets $622,000

7 0

3 years ago

The Fisher formula is expressed as _____ where R is the nominal rate, r is the real rate, and h is the inflation rate.

Elis [28]

Hello !

Answer :

The Fisher formula is expressed as 1+R = (1 + r) x (1+ h) where R is the nominal rate, r is the real rate, and h is the inflation rate.

3 0

2 years ago

After identifying the purpose of your message, you should select the most appropriate communication channel. When determining th

Varvara68 [4.7K]

For an effective communication to take place the selection of the most appropriate channel ( medium for convening information) for the intended audience is very important

Explanation:

The factors that are important in the determination of the most appropriate channel/Medium for communication are:

Urgency of the message(Importance of the message)
Confidentiality of the message and the medium
Record(The business communication needs to be recorded)
Cost incurred in sending the message
Supporting Technology
Distance

When determining the most effective channel for the message,one should initially consider the importance of the message.

6 0

4 years ago