The marginal-cost curve intersects the average-total-cost curve at the output level where average fixed costs are zero.

Serjik [45]

Answer: B. 1/R, where R represents the reserve ratio for all banks in the economy.

Explanation:

The Money Multiplier is the money that Banks generate given a certain RESERVE REQUIREMENT/RATIO.

A Reserve Requirement is money that the Central Bank requires that Banks do not loan out and instead keep in reserve.

For example, if the reserve rate is 10% and a bank has $10 they can only loan out $9.

Assuming they loan out $9 then they created $19 in the economy because their customers still own the original $10 but now they have also given loans of $9. The people who take the loans then deposit it in another bank. That bank would keep $0.90 in reserve and loan out $8.10 meaning that $27.10 now exists in the economy.

The process goes on and on until it gets to $100.

A simpler way to get to the final figure is to divide 1 by the reserve requirement = 1/r which is the money multiplier.

Using the above example, that would be 1/0.1 which is 10.

Multiplying this 10 by the initial deposit of $10 will give you that same $100.

8 0

3 years ago

Read 2 more answers

Newtech corporation is offering a 10% stock dividend. The firm currently has 200,000 shares outstanding and after-tax profits of

White raven [17]

The stock price after the stock dividend = $3636

<h3>What is Stock dividend?</h3>

A common stock dividend is a payment made from a company's profits to holders of common stock. The payout is made in the form of stock or cash, much like regular dividends. The amount of the common stock dividend may be regulated by law, especially if it is paid as a cash distribution that is effectively a liquidation.

<h3>What is shares outstanding?</h3>

All of the shares of a corporation that have been approved, issued, and purchased by investors and are now owned by them are referred to as outstanding shares. They differ from treasury shares, which are stock held by the corporation itself and have no rights that can be exercised.

<h3>According to the given information:</h3>

There are 200,000 shares in circulation.

Profits after taxes amount to $800,000.

$48 is the current stock price.

Stock dividend equals 10%

number of shares outstanding following a stock dividend

=200,000*(1+10%)

=220,000

earnings per share following stock dividends

=$800,000/220,000

=$3.636

As a result, $3.636 worth of earnings per share remain after the stock dividend.

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5 0

2 years ago

The measure of systematic risk is called ________.

Lorico [155]

The measure of systematic risk is called <u>beta</u>.

The answer is option c.

Beta is the same old CAPM measure of systematic hazard. It gauges the tendency of the go back of protection to transport in parallel with the return of the inventory market as an entire. One manner to consider beta is as a gauge of a protection's volatility relative to the marketplace's volatility.

Systematic risk is a part of the total risk this is caused by factors beyond the control of a specific company or individual. Systematic risk is caused by elements that are outside to the organization. All investments or securities are situations to systematic hazard and, therefore, it's far a non-diversifiable chance.

To measure a monetary firm's contribution to systemic hazard includes measuring the company's expected capital shortfall in a crisis. This right away offers the regulator with a quantifiable degree of the relative significance of a firm's contribution to ordinary systemic chance.

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4 0

1 year ago

This refers to dividing responsibility among specific units or departments.

Julli [10]

I think this could be division of labour.

6 0

3 years ago

Suppose that when Sue’s disposable income is $10,000, she spends $8,000, and when her disposable income is $20,000, she spends $

soldier1979 [14.2K]

Answer:

The correct answer is: 2,000; 0.4

Explanation:

We can write the initial consumption function as,

C = a + bY

8,000 = a + 10,000b

a = 8,000 - 10,000b

The new consumption function is,

14,000 = a + 20,000b

Putting value of a in this function

14,000 = 8,000 - 10,000b + 20,000b

14,000 - 8,000 = 10,000b

b = $\frac{6,000}{10,000}$

b = 0.6

Putting the value of b in the initial function,

8,000 = a + 10,000 $\times$ 0.6

a = 8,000 - 6,000

a = $2,000

The marginal propensity to consume or b is 0.6.

The marginal propensity to save will be

= 1 - 0.6

= 0.4

7 0

3 years ago