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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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Arden Company reported the following costs and expenses for the most recent month: Direct materials $ 79,000 Direct labor $ 41,0
ICE Princess25 [194]

The question is incomplete. Here is the complete question.

Arden Company reported the following costs and expenses for the most recent month: Direct materials $ 79,000 Direct labor $ 41,000 Manufacturing overhead $ 19,000 Selling expenses $ 22,000 Administrative expenses $ 34,000 Required:

1) What is the total amount of product costs?

2) What is the total amount of period costs?

3) What is the total amount of conversion costs?

4) What is the total amount of prime costs?

Answer:

(1) product cost = $139,000

(2) period cost = $56,000

(3) conversion cost = $60,000

(4) prime cost = $120,000

Explanation:

(1) The total product costs can be calculated as follows.

= Direct material + direct labor + manufacturing overhead

= $79,000 + $41,000 + $19,000

= $139,000

(2) The period cost can be calculated as follows

= selling expenses + administrative expenses

= $22,000 + $34,000

= $56,000

(3) The conversion cost can be calculated as follows

= direct labor + manufacturing overhead

= $41,000 + $19,000

= $60,000

(D) The prime cost can be calculated as follows

= Direct material + direct labor

= $79,000 + $41,000

= $120,000

3 0
3 years ago
Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each c
yulyashka [42]

Answer: $6

Explanation:

Total production of oranges= 4

Total production of candy bars=10

Each orange sells for=$0.25

Total market value of orange production=price × quantity

=$0.25×4

=$1

Each candy bar sells for= $0.50

Total market value of candy bar production=price of candy bar × quantity of candy bar

=$0.50 × 10

=$5

The economy produces oranges and candy bars.

The total market value of production in the economy= Total market value of Orange production + Total market value of candy bar production

=$1 + $5

=$6

5 0
2 years ago
Suppose that Larry, an economist from a business school in Georgia, and Megan, an economist from a nonprofit organization on the
iVinArrow [24]
Where is the dialogue? :)
3 0
2 years ago
What is the historical origin of carrot cake​
PtichkaEL [24]

Answer:

carrot cake originated from such carrot puddings eaten by Europeans in the Middle Ages, when sugar and sweeteners were expensive and many people used carrots as a substitute for sugar.

7 0
3 years ago
Read 2 more answers
The nominal interest rate in Fiji is 3%, while the nominal interest rate in the U.S. is 5%. Real interest rates in both countrie
Aloiza [94]

Answer:

1.98%

Explanation:

The computation is shown below:-

As we know that

PPP equation i.e

Nominal Interest rate = Real interest rate + Inflation rate

Now

The Inflation rate for Fiji is

= 5% - 2%

= 3%

And, the Inflation rate for US is

= 3% - 2%

= 1%

As we can see that the inflation rate for Fiji is more than the inflation rate for US so we should be depreciated the currency by considering the inflation differential which is shown below:

= (1 + 3%) ÷ (1 + 1%) -1

= 1.98%

8 0
2 years ago
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