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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:

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What do you think is meant by the phrase "both alien and non-alien"?

serious [3.7K]

I believe it meant both alien immigrants and non-alien immigrants? Is this the correct context, immigration? Or, does it mean extra-terrestrial life? I would need to see context to know for sure, but I believe it is referencing immigration.

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3 years ago

Assume the following data for Cable Corporation and Multi-Media Inc.

Tatiana [17]

Answer:

a-1 Cable Corporation 13.05

Multi-media Inc. 33.1%

a-2 Multi-Media Inc.

2. Cable Corporation Multi-Media Inc.

Net income/Sales 9.84% 5.19%

Net income/Total assets 7.76% 14.51%

Sales/Total assets .79 times 2.80 times

Debt/Total assets 40.55% 56.17%

Explanation:

a-1. Computation to determine the return on stockholders’ equity for both firms.

CABLE CORPORATION

Using this formula

Return on Stockholders’ Equity= Net Income / Stockholder’s equity

Let plug in the formula

Return on Stockholders’ Equity=$31,200 / 239,000

Return on Stockholders’ Equity= 0.1305*100

Return on Stockholders’ Equity=13.05%

MULTI-MEDIA INC.

Return on Stockholders’ Equity=$140,000 / 423,000

Return on Stockholders’ Equity= 33.1%

a-2. Based on the above calculation the firm that has the higher return is MULTI-MEDIA INC.

b. Computation for the following additional ratios for both firms.

Cable Corporation Multi-Media Inc.

Net income/Sales 9.84% 5.19%

($31,200/317,000=9.84%)

($140,000/2,700,000=5.19%)

Net income/Total assets 7.76% 14.51%

($31,200/402,000=7.76%)

($140,000/965,000=14.51%)

Sales/Total assets .79 times 2.80 times

(317,000/402,000=.79 times

(2,700,000/965,000=2.80 times)

Debt/Total assets 40.55% 56.17%

(163,000/402,000=40.55%)

( 542,000/965,000=56.17%)

4 0

3 years ago

Most businesses replace their computers every two to three years. Assume that a computer costs $2,000 and that it fully deprecia

sineoko [7]

Answer:

$2000=Z/(1+i)^1+Z/(1+i)^2+Z/(1+i)^3

Explanation:

let Z be the annual minimum cash flow

The internal rate of approach can be used here, in other words, the rate of return at which capital outlay of $2000 is equal present values of future cash flows

In year 1, present value of cash =X/discount factor

year 1 PV=Z/(1+i)^1

year 2 PV=Z/(1+i)^2

year 3=Z/(1+i)^3

Hence,

$2000=Z/(1+i)^1+Z/(1+i)^2+Z/(1+i)^3

Solving for Z above would give the minimum annual cash flow that must be generated for the computer to worth the purchase

Assuming i, interest rate on financing is 12%=0.12

Z can be computed thus:

$2000=Z(1/(1+0.12)^1+(1/(1+0.12)^2+(1+0.12)^3)

$2000=Z*3.09497902

Z=$2000/3.09497902

Z=$646.21

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3 years ago

Units Produced 20,000

Alexeev081 [22]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Units Produced 20,000

Units Sold 17,000

Unit Sales Price $ 240

Full Manufacturing Cost Per Unit $97

<u>Under the absorption costing method, the fixed manufacturing overhead is part of the product cost.</u>

Income statement:

Sales= (17,000*240)= 4,080,000

Cost of goods sold= (17,000*97)= (1,649,000)

Gross profit= 2,431,000

Variable Selling Expenses= (71,000)

Fixed General and Administrative Costs= (88,000)

Net operating income= 2,272,000

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3 years ago

Why is it important for insurance companies to have a large pool of people paying premiums?

Sloan [31]

Answer:

The premium payments of all the insured clients will cover the costs for the emergencies of the few who need it. The more people that pay premiums, the less likely each insured client will experience an emergency.

7 0

3 years ago