Answer:
The answer is $1,875
Explanation:
Money multplier effect = 1 / required reserve ratio .
And the required reserve ratio is 8 percent
Deposit into the checking account is $150.
Money multplier effect = 1 / 0.08
12.5
Therefore, the largest amount (in dollars) by which the money supply can increase as a result of the deposit of $150 is:
12.5 x $150
=$1,875
Answer:
b. 15%
Explanation:
IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-1,400,000
Cash flow each year for 3 years = $613,228
IRR = 15%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
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Answer:
True
Explanation:
The variables price and quantity are inverse correlated then a change in 1 has the exact opposite effect in the other.
