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Dvinal [7]
3 years ago
13

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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Christina purchased 500 shares of stock at a price of $62.30 a share and sold the shares for $64.25 each. She also received $738
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Answer:

1.60 percent

Explanation:

exact real rate of return on this investment = interest rate - inflation rate

total revenue gotten by Christina = ( 500 × $ 64.25) + $ 738 = $ 32863

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her profit =  $ 32863 - $ 31150  = $ 1713

interest =  $ 1713 / $ 31150 = 0.054992 × 100 = 5.4992 %

exact interest rate = 5.4992 %  - 3.9% = 1.5992 approx 1.60 percent

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Aim higher college has deployed an open source blog package. this package uses a database backend and allows users to create use
Svetradugi [14.3K]
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Responsible consumption requires _____
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Answer:

D. Considering whether a product is a need or a want.

Explanation:

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Kevin wants to buy a house that costs $350,000. Kevin will need to go to a bank and obtain a mortgage in order to purchase the h
Anestetic [448]

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3 years ago
LO 1.1The managers of an organization are responsible for performing several broad functions. They are ________.
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planning, controlling, and evaluating

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I hope my answer helps you.

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