Answer:
The maximum change in the money supply is 250 million
Explanation:
In this question, we are asked to calculate the maximum change in money supply given that the required reserve ratio is 20%.
Firstly, we need to calculate the multiplier in this case.
The multiplier in this case can be calculated by dividing 1 by the required reserve ratio
Mathematically, multiplier = 1/required reserve ratio = 1/0.2 = 5(kindly note that 20/100 = 0.2)
Now, we move on to calculate the maximum change in the money supply.
This would be equal to multiplier * value of open market sale = 5 * 50 million = 250 million
Therefore, the maximum change in the money supply is 250 million
Goods, services and money all flow in one direction since money pays for the goods and services is not true according to the circular flow of income and output.
<h3>What are the four circular flows of income?</h3>
The circular flow model illustrates the continuous transfer of money from producers to households and back again. Money goes in an economy from producers to workers as wages, then back from workers to producers when they spend their money on goods and services.
Households, businesses, the government, and foreign sectors make up the cyclic flow of revenue in a four-sector economy. The interaction between many economic stakeholders is thus provided through the circular flow of income. o International trade plays a significant part in the four-sector model's open economy. o The capital market mobilizes savings and borrowing from companies, governments, and households.
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Answer:
c) The firm profix-maximizing output is Q = 200
Explanation:
We have the firm's profit equation
To find the maximizing output we have to derivate the equation (marginal profit) and then find Q.
We find the Q that maximizes output by equaling the quation to 0
C is the only one who coincides with the solution.
Answer:
a.
Explanation:
‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.
Operating Activities records the cash transactions involved in the operations of the business are recorded under ‘operating activities’ in the cash flow statement.
Examples: Revenue earned, expenses incurred etc.
There are two methods to prepare the cash flow statement. The only difference between both the methods is the way of presenting cash flow from operating activities.
The two methods of presenting cash flow statement are:
- Direct method: Operating activities section under direct method reports the amount of cash received and paid by the company during the period.
- Indirect method: Operating activities section under indirect method reports the net income and later adjusts the transactions to convert it to cash basis of accounting.
An entrepreneur is the owner of the company while the monitor and manager are employees.
<h3>Who is an Entrepreneur?</h3>
This is the individual which owns the company and bears the risk and enjoys most of the reward derived from it.
The entrepreneur serves as an innovator, the manager helps to control the affairs of the company while the monitor oversees compliance.
- Creating a supportive environment will there is an inclusive environment which will boost productivity.
- Managing team dynamics involves understanding the roles and behavior of team members which ensures they are suited to the rule for increased productivity and less errors.
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