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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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1. Financial institutions in the U.S. economy Suppose Hubert would like to use $10,000 of his savings to make a financial invest

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c and e

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2 years ago

You invested $29 comma 000 in two accounts paying 2 % and 5 % annual interest, respectively. If the total interest earned for

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the amount invested in account paying 5% interest will be '$29,000 - x'

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( 2% of x ) + [ 5% of ( $29,000 - x)] = $940

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2 years ago

At the beginning of the month, the Forming Department of Martin Manufacturing had 11,000 units in inventory, 40% complete as to

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Answer:

Materials ⇒ 70,725 units
Conversion ⇒ 68,600 units

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Using the weighted average method, the equivalent units are the Units transferred out plus the equivalent closing inventory.

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3 years ago