Answer:
What to produce?
Explanation:
What to produce?
Due to the fact that resources are scarce, a producer has to decide what he wants to produce.
In the question above, the consumer has decided to produce consumer goods.
How to produce?
The producer has to decide on the optimal production method to employ. It has to decide whether a labour or technology intensive production method would be better .
For whom to produce?
A producer has to answer this question in order to be able tailor his product to perfectly suit his target customers. The producer has to decide if to produce for young people, middle aged people or the elderly or sell to the poor or rich.
I hope my answer helps you
Answer:
Depreciation expense is added back to net income when preparing the cash flow from operating activities section because depreciation represents a non cash reduction to net income. Depreciation is a non cash reduction because it notes down the the reduction in the value of an asset due to use as an expense and because the company isn't making any cash transactions due to depreciation of assets therefore it is a non cash expense and this is why it is added back to net income when preparing cash flow from operating activities.
Explanation:
Answer:
What is the Value of Bank Deposits?
bank deposits = bank reserves / required reserve ratio = $200 / 20% = $1,000
What is the Money Supply?
money supply = bank deposits + currency held by the public = $1,000 + $1,00 = $2,000
Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase?
if the FED sells $50 worth of bonds, money supply will decrease by $50 x (1 / 20%) = $50 x 5 = $250
total money supply = $2,000 - $250 = $1,750
