Answer:
The money multiplier in this economy is 5
Explanation:
In this question, we are asked to calculate the money multiplier in the economy. The money multiplier in the economy refers to one of the many ratios of commercial bank money to reserve bank money under a fractional-reserve banking system.
The formula for money multiplier is 1/reserve ratio.
Firstly, we calculate the initial bank reserves:
Mathematically:
Initial bank reserves = reserve deposit ratio * $500 = 0.2 * $500 = $100
1) increase in bank reserves by $1 , bank reserve deposit increases from $500 to $101 / 0.2 = $505 and the money supply increases by $505 - $500 = $5
2) increase in bank reserves by $5 , bank reserve deposit increases from $500 to $105 / 0.2 = $525 and the money supply increases by $525 - $500 = $25
3) increase in bank reserves by $10 , bank reserve deposit increases from $500 to $110 / 0.2 = $550 and the money supply increases by $550 - $500 = $50
In the individual calculations, it can be seen that the money supply rises by 5 times increase in bank reserve. This means that the money multiplier in this economy is 5
Answer:
agreeableness
Explanation:
Emotional stability measures the ability to withstand stress.
Conscientiousness measures the ability of a person to be reliable and organised.
Openness to experience measures interests and fascination with new things and experiences.
Extraversion measures the degree to which a person likes being with other people.
I hope my answer helps you
Caleb wants to start a business in the health and wellness industry, but before taking the time and effort to create this business, he should know how this business sector has recently performed and where it is headed. Basically, Caleb needs to educate himself on industry trends. (Option A)
<h3>What is this questions about?</h3>
These questions are about business administration. See other answers below.
Financial accountants prepare financial information for people who are both inside and outside the company to assess if the company is performing well. (Option C)
<h3>If Cameron prepares information—such as reports on costs and operations—for the use of employees only, what type of accountant is he?</h3>
Cameron is a managerial Accountant. (Option A).
Jonathan and his partner Drew understand they need to create a document to address stipulations for working with their vendors who supply building materials and home decor staging products for their home show.
<h3>While drafting a contract, what key principles should Jonathan and Drew remember?</h3>
The key principles they ought to remember are;
- Exchange of value;
- offer and acceptance. (Option B)
Learn more about Business Administration:
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Answer:
correct answer is a. 25%
Explanation:
given data
TI charges = $200 per student
expects students = 500
Total annual fixed cost = $60,000
students increase = 10% = 0.10 × 500 = 50 + 500 = 550
solution
first we get here revenue from 500 students that is
revenue = 500 × 200 = $100000 .............1
and revenue by 550 students
revenue = 550 × 200 = $110000 ................2
so net income for 500 students will be
net income = 100000 - 60000 = $40000
and
net income for 550 students will be
net income = 110000 - 60000 = $50000
so here we get change is $50000 - $40000 = $10000
so net income will increase as = × 100
net income will increase as = 25%
correct answer is a. 25%