<span>14 + 17 + 24 = 55
24 + 24 + 24 = 72
Producer Surplus = $17
Tim makes $17 more than he is initially willing to charge, thus a surplus of 17.
33 + 26 + 24 = 83
24 + 24 + 24 = 72
Consumer Surplus = $11
The customers pay $11 less than they are initially willing to pay, thus a surplus of 11.
Everybody wins, yay capitalism</span>
The correct option is C.
Student loans that originated from the federal government are called federal students loans. This type of loan usually allows the borrower to pay lower interest and it has more flexible repayment options compare to loans from other sources. The interest rate of the loan is usually fixed over time.<span />
Answer:
These statements are true:
A) The Federal Reserve does not set the Federal funds rate, but it influences it through the use of open market operations:
For example, at the very moment the Fed funds rate is 1.75%. If the Fed wanted to raise it to 2%, it would have to do so through the use of open market operations (in this case, because it wants to raise the rate, it would have to sell securities in order to reduce the money supply).
C) The Federal Reserve sets the target for the Federal funds rate, and then uses the reserve ratio to push banks toward that target.
Reserve requirements are perhaps the most powerful, and least often used, monetary policy tool that the Fed has at its disposal. It is very powerful because it directly increases or decreases the money supply.
For example, if the Fed wants to increase the fed funds rate, it can raise the reserve ratio so that banks keep more money in reserves, have less money to loan, and in consequence, create less money, causing the money supply to shrink and the fed funds rate to rise accordingly.
D) The Federal Reserve sets the Federal funds rate.
Correct. More specifically, the Federal Open Market Committee, which meets eight times a year to set the target for the fed funds rate.
True rather be safe then sorry
Answer:
He should have exchanged the dollars for real in January 2016 to maximize his Brazilian spending. The exchange rate in January will result to highest Real (BRL) of R$<em>59,463.00</em>
Explanation:
To arrive at R$ equivalent of $15,000 on monthly basis, since BRL=1.00 USD, multiply R$ exchange rate each month by $15,000.
For January, 3.9642*15,000= R$59,463.00
February 3.8402*15,000= $57,603.00, etc.
Solution
S/N Month BRL=1.00 USD BRL Equivalent(R$)
1 January 3.9642 59,463.00
2 February 3.8402 57,603.00
3 March 3.6086 54,129.00
4 April 3.6851 55,276.50
5 May 3.5843 53,764.50
6 June 3.5493 53,239.50
7 July 3.2331 48,496.50
8 Aug-08 3.2312 48,468.00