Answer:
(a) What is the amount by which Carla Bank's liabilities have changed?
Carla Bank's liabilities increased by $15,000 (bank deposits are liabilities).
(b) Calculate the change in required reserves for Carla Bank.
Carla Bank's reserves must increase by $15,000 x 5% = $750
(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially make because of Christopher's deposit?
Carla Bank can loan $15,000 x 95% = $14,250
(d) Based on the central bank's open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system.
Money multiplier = 1 / 5% = 20
The money supply has the potential to increase by $15,000 x 20 = $300,000
(e) How will the change in the money supply in part (d) affect aggregate demand in the short run? Explain.
Aggregate demand will increase since the total money supply increases. This should also help to decrease the interest rates and foster investment.
Answer:
89%
Explanation:
according to Chebyshev's theorem, for any k > 1, at least [1 - (1/k^2)] of the data will lie within k standard deviations of the mean.Therefore, Chebyshev's theorem formula can be given as follows:
Chebyshev's theorem formula = 1 - (1/k^2) ...................... (1)
In order to fing k, we proceed as follows:
1. Subtract the mean of rents from the larger rent value,
That is, $7,000 - $4,000 = $3,000
2. Divide the difference of $3,000 above by the standard deviation to obtain k as follows:
k = $3,000 ÷ $1000 = 3
3. Substitute 3 for k in equation (1) as follows:
Chebyshev's theorem formula = 1 - (1/3^2)
= 1 - (1/9)
= 1 - 0.11
= 0.89
If we multiply 0.89 by 100, we have 89%.
Therefore, 89% of the rents in the sample will fall between $1000 and $7000 per month.
Double standing backflip and handspring to turbine-turner
Answer:
A tax rate of 10.71% should make both both indifferent for investors.
Explanation:
the municipal bonds are income-tax free so we should solve for the tax rate which makes both bonds equaly attractive.
0.075 = after-tax rate
0.084 = pre-tax rate
A tax rate of 10.71% should make both both indifferent for investors.
