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Monica [59]
2 years ago
12

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

Business
1 answer:
mafiozo [28]2 years ago
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

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The Coase theory suggests that private markets may not be able to solve the problem of externalities
olga nikolaevna [1]

Answer: A. When the number of interested parties is large and bargaining costs are high.

Explanation:

The Coase Theorem is a legal and economical theory used to describe competitive markets. When the competitive markets are high, bargaining costs are high because each company is is fighting for use of the production and distribution channels. There are efficient input and output levels in a competitive market.

3 0
3 years ago
Ridgewood Company had the following ending balances on its financial statements: 2018 2019 2020 Prepaid insurance $1,400 $ 900 $
Radda [10]

Answer:

B $12,300

Explanation:

Note that the movements in the prepaid insurance account balance is as a result of payments and amortization of these expenses as they fall due. While additional payments increases the prepaid insurance balance, amortization reduces it.

Given that the ending balance in the Prepaid insurance account for 2018 is  $1,400. This is the opening balance for prepaid insurance in 2019. Given that the insurance expense for 2019 is $12,800 and the ending balance in the Prepaid insurance account for 2019 is $900

Let the amount paid in 2019 be r

Then

$1,400 + r - $12,800 = $900

r = $900 + $12,800 - $1,400

r = $12,300

The right answer is B $12,300

7 0
3 years ago
Make sure that your changes do not ___ your clients.
WARRIOR [948]
Affect your clients.
5 0
3 years ago
Casper and cecile are divorced this year. as part of the divorce settlement, casper transferred stock to cecile. casper purchase
andre [41]

<span>Separate maintenance payments and alimony are deductible by the party creating the payments and are includible in the gross income of the party getting the payments. Therefore, income is shifted from the income earner to the income beneficiary, who is better able to pay the tax on the amount received.</span>

6 0
3 years ago
Brooks Corporation can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution ma
Rus_ich [418]

Answer:

D. Make Plain which creates $6 more profit per machine hour than Fancy does

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Brooks Corporation can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $72 and takes two machine hours to make and Fancy has a unit contribution margin of $90 and takes three machine hours to make. There are 2,400 machine hours available to manufacture a product.

Brooks should make Plain which creates $6 more profit per machine hour than Fancy does.

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