Professional growth and development - Bob
Mentoring - Debby
Certification - Joseph
Scholarship - Libby
Networking - Chad
This form of production that operates on supply and demand is the <u>market economy.</u>
<h3>Facts about the market economy </h3>
- Is controlled by forces of supply and demand.
- Citizens are allowed to own the means of production.
The warehouse Daveed works in is privately owned and they seek supply based on the demand for their goods.
This is in conclusion, a market economy.
Find out more on the market economy at brainly.com/question/1659498.
Answer:
the money multiplier = 1 / reserve ratio
in this case, the reserve ratio is 10% (required) + 10% (voluntary) = 20%, so the money multiplier = 1/20% = 5
What is the immediate impact of this transaction on the money supply?
- None, since the money supply doesn't change. When a customer deposits money in a bank, the money does not increase, only its composition changes.
The maximum amount by which this bank will increase its loans from the transaction in part (a)
- the bank will be able to loan ⇒ total deposit x (1 - reserve ratio) = $9,000 x (1 - 20%) = $7,200
The maximum increase in the money supply that will be generated from the transaction in part
- since the banks started to "create" money by lending the money, the money supply will increase by ⇒ total deposit x (money multiplier - 1) = $9,000 x 4 = $36,000
Assume that the government increases spending by $9,000, which is financed by a sale of bonds to the central bank. Indicate what will happen to the money supply.
- The money supply will increase.
Explain what will happen to the money demand.
- The money demand will also increase because aggregate demand and income will increase. Aggregate demand will increase by ⇒ $9,000 x government multiplier. The government multiplier = 1 / MPS.
Answer:
Correct Option is B) Rochester Income Increase, Reedsburg Income No effect
Explanation:
As per IFRS,
When a company holds share of any company up to 20% then it is an associate, and in this case Rochester holds only 15% and thus will increase its net income with dividend received. (Cost method is followed)
When a company holds more than 20 % and less than 50% then the equity method is followed until and unless major significance is not exercised, generally it is exercised. In that case equity method is followed, and any income received is adjusted from cost of investment, and do not form part of income.
