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erik [133]
3 years ago
11

In a fractional-reserve banking system, an increase in reserve requirements__________.

Business
1 answer:
juin [17]3 years ago
8 0

Answer:

b. decreases both the money multiplier and the money supply.

Explanation:

An increase in reserve requirements will decrease the money supply in the economy. This is because, banks and other financial institutions will have lower excess reserves to lend out to the public hence decreasing the overall amount of borrowing . Based on money multiplier, the explanation is based on the following equation;

Money multiplier = 1/ required reserve , if the required reserve increases then the fraction will be smaller. Therefore, the money multiplier will decrease too.

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A company has employed two workers A and B whose productivities are 20units and 15units respectively. The wage for A is k12 whil
Leni [432]

Answer:

no

Explanation:

In order to achieve optimal employment level, the ratio of productivity between employees must be equal to the ratio between their wages, e.g. an employee who is 25% more productive, should earn 25% more.

In this case, the productive ratio is 15:20 or 3:4, while the wage ratio is 8:12 or 2:3. Since the wage ratio is lower than the productivity ratio (2:3 < 3:4), the two employees are not optimally employed.

3 0
3 years ago
Gardening supplies are hot now, but they haven't always been. Why is this true of other businesses, too?
9966 [12]

i think your answer is B

ok

:P

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│Hope this helped  _____________________│

│~Xxxtentaction ^̮^ _____________________│

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5 0
3 years ago
The IMF has: a. helped support some weaker European countries during the recent financial crisis. b. been very helpful in monito
Ann [662]

Answer:

The correct answer is letter "A": helped support some weaker European countries during the recent financial crisis.

Explanation:

The International Monetary Fund (IMF) is a U.S. based part of the United Nations (UN) agency that promotes international economic prosperity by cooperating with least-favored nations to reduce their unemployment rates. The fund has 189 members and had a vital contribution in the Western European economic recovery after their recent financial crisis as a consequence of unemployment, drop of purchasing power and public debt.

5 0
3 years ago
Which compounding periods will yield the lowest effective annual rate given a stated future value at year 5 and an annual percen
emmainna [20.7K]

Answer:

Annual

Explanation:

The ANNUAL compounding periods will yield the lowest effective annual rate given a stated future value at year 5 and an annual percentage rate of 10 percent

4 0
3 years ago
On average, it can cost _____________________ and take _____________________ to discover a new drug, perform the necessary safet
tatuchka [14]

Answer:

$800 million; more than a decade

Explanation:

If a pharmaceutical firm decides to develop a new drug. On average, it can cost $800 million and take more than a decade to discover a new drug, perform the necessary safety tests, and bring the drug to market.

6 0
3 years ago
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