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3 years ago

If the reserve-deposit ratio is less than one, and the monetary base increases by $1 million, then the money supply will

Business

2 answers:

poizon [28]3 years ago

7 0

Answer:

c) increase by more than $1 million

Explanation:

As the required reverve ratio is les than one the banks will lend a portion of the money whihc is deposits. This makes a multiplication of the amount of money which create through a secondary market (loans) Making possible the increase over a millon,

The reverse ratio goes from zero to one, being one a complete reserve when no loan is possible with the deposits.

zimovet [89]3 years ago

6 0

Answer:

C) increase by more than $1 million

Explanation:

The effect that an increase in the monetary base causes on the money supply is given by: change in monetary base x money multiplier

the money multiplier is calculated by dividing 1 over the reserve ratio, so if the reserve ration is less than 1, e.g. 0.5, then the money multiplier will = 1 / 0.5 = 2

Following the example, a $1 million increase in the monetary base will increase the money supply by: $1 million x money multiplier = $1 million x 2 = $2 million.

Since the reserve ratio is lower than 1, then the money multiplier will always be more than 1 (e.g. reserve ratio = 0.99, money multiplier = 1.01), so any increase in the monetary base will cause a larger increase in the money supply.

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When courts find accountants liable for constructive fraud, the implication is that:______.

barxatty [35]

Even if they were unaware of the fraud, accountants may be held accountable for it.

<h3>How does constructive fraud work?</h3>

A legal fable known as "constructive fraud" describes a circumstance in which a person or organization obtained an unfair advantage over another using dishonest or unjust means. As opposed to true fraud, no proof of intent is required. The failure to inform clients of product flaws is one example of unfair practices.

The elements are:

1) a duty owed by the party to be charged to the complaining party due to their relationship;

2) violation of that duty by making deceptive material misrepresentations of past or current facts or remaining silent when a duty to speak exists; and

3) reliance on such statements by the complaining party.

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2 years ago

You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this

lana66690 [7]

Answer:

Total fixed costs = $6,800

b. Total variable cost = $2,775

c. = $0.48 per mile

2. iii variable costs, because they can be avoided.

Explanation:

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.

Depreciation + Insurance + cost of registration

Depreciation = Cost - salvage = 8,000 - 3,200 = $4,800

Insurance = 960 x 2 = 1920

Total fixed cost = 4,800 + 1920 + 80 = $6,800

Total variable cost

Gasoline + Service + Oil change + tire replacement

Gasoline = 10,000/ 50 = 2000 x 2.5 x 2 = 1000

= (1000 + (240 * 5) + (35 * 5) + 400

= 1,000 + 1,200 + 175 + 400 = $2,775

Total cost / Number of miles

= (6,800 + 2,775) / (10,000 * 2 years)

= $0.48 per mile

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3 years ago

A car dealership performs a credit check on a potential customer. according to the credit bureau, the customer's credit score is

Nikitich [7]

A 710 credit score is considered good. People with this credit score are likely to be approved for credit cards and loans with average interest rates and terms.

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3 years ago

When the price of erasers increases from $1.50 to $2.50, the quantity demanded of pencils is unchanged. The cross-price elastici

Inga [223]

Answer:

d. 0; unrelated.

Explanation:

Cross elasticity of demand is the degree of responsiveness of demand for a particular product to a change in the price of another product.

A change in price of a product will lead to a change in demand for another product if the two goods are either goods of close substitutes or if they are complements. If two goods are not related, the change in price of one will not have any impact on the demand for the other good.

In this question, the cross elasticity is zero because biro and pencil are not related.

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3 years ago

Briefly describe a customer experience you have personally encountered where you were unsatisfactory when you purchased a good.

sattari [20]

Answer: Faulty Mother board ordered on AliExpress

Explanation:

A while back my Laptop developEd power issues wasn’t turning on, took it down to the technician who told me it had board issues as it wasn’t responsive. And the only solution was me getting a new mother board. Well i ended up ordering the board from Abroad on Aliexpress the board arrived damaged Was bent all efforts to get a refund or a replacement was proving difficult as the seller and AliExpress were hell bent on frustrating me. At the end was refunded but that was like over a month was one hell of an experience.

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3 years ago