All categories

1 year ago

Reserves change by $12 million, and the money supply changes by $60 million. what does the simple deposit multiplier equal?

1 answer:

8 0

Reserves change by $12 million, and the money supply changes by $60 million. 5 is the simple deposit multiplier equal.

simple deposit multiplier = ΔM/ΔR

= 60/12 = 5

The simple deposit multiplier assumes that banks hold no excess reserves, and households and corporations deposit the complete amount of every test in a monetary institution and no longer take out any as foreign exchange.

The deposit multiplier is also referred to as the deposit enlargement multiplier or the clean deposit multiplier. it is linked to the part of a financial institution's deposits that may be lent to borrowers. This lending hobby injects coins into the kingdom's cash delivery and enables financial hobby.

Learn more about deposit multiplier here: brainly.com/question/15397793

#SPJ4

You might be interested in

ANSWER ONLY IF YOU KNOW

leva [86]

Answer:
True

Monetary policy is the control of the quantity of money available in an economy and the channels by which new money is supplied

3 0

2 years ago

Accounts receivable $1,050,000

dimulka [17.4K]

Answer:

c. $ 84,000 increase

Explanation:

The entry when the company wrote off uncollectible accounts:

Debit Allowance for Doubtful Accounts $16,000

Credit Uncollectible accounts $16,000

It makes Account receivable decrease: $16,000

In 2007, Sales on account that were not collected = $290,000 - $172,000 = $118,000

It makes Account receivable at the end of the year increase: $118,000

At 12/31/07,

1. Accounts receivable was: $1,050,000+$118,000-$16,000=$1,152,000

2. Cash realizable value = Accounts receivable - Allowance for Doubtful Accounts = $1,152,000 - $108,000 = $1,044,000

From 12/31/06 to 12/31/07, cash realizable value from the balance increase:

$1,044,000 - $960,000 = $84,000

7 0

2 years ago

'As fewer people buy gym memberships, the demand for running shoes will decrease and the price of a pair of running shoes will i

olchik [2.2K]

Answer: "The rise in the price of a pair of running shoes will increase the supply of running shoes".

This statement is false because a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase the supply of running shoes.

This occurs as the price of a pair of running shoes increases,therefore decreasing the demand and thus the supply will not increase.

4 0

3 years ago

Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 35,000 cases of cola were sold every we

galben [10]

Mark brainlest please

Answer:

The amount of tax will be $3
Tax Burden on consumer is $2
Tax burden on producer ( in case you want to know) will be $1

Check the image below.

Tax is equal to the difference between the price actually paid by the buyer and the price actually received by the seller. Tax= Price paid by buyer-Price received by seller Tax= $8-$5 Tax = $3 Thus the tax computed is $3 per case.

3 0

2 years ago

Opinion: Based on marginal analysis that examines costs and benefits, why do some people choose NOT to eat organic food?

Katyanochek1 [597]

Non-organic food is cheaper, and often has brand names, which appeal to the consumer more than an organic brand does.

3 0

3 years ago

Read 2 more answers