The smaller the reserve requirement, the larger the decrease will be in required reserves.
<h3>What is the reserve requirement?</h3>
The reserve requirement is the percentage of consumer's deposits that are kept as reserves with the Central Bank. The reserve requirement is determined by the reserve ratio.
When the Fed sells treasury bonds, money supply decreases. This is known as a contractionary monetary policy.
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Answer:
4.16%
Explanation:
to calculate Singapore's economic growth rate we can use the future value formula (we could also use the rule of 72 but it is not very exact):
future value = present value x (1 + r) ⁿ
- future value = 900
- present value = 450
- n = 17
- r = ?
900 = 450 (1 + r)¹⁷
(1 + r)¹⁷ = 900 / 450 = 2
1 + r = ¹⁷√2 = 1.0416
r = 1.0416 - 1 = 0.0416 or 4.16%
Answer:
The answer is by increasing tax rate or reducing its spending or both.
Explanation:
Fiscal policy is the use of government spending and government revenue (tax) to control the economy.
If the economy is growing at a faster rate than what it can sustain in the long run, it means the economy is overheating. All the participants (firms, households, government) are spending heavily.
The government can slow it down by increasing the tax rate of both the households and business. With this, the disposable income of households will reduce and will have lesser money to spend and business profit too will reduce and this will reduce their spending on investments.
Or by reducing its own spending on infrastructure or both at the same time.
Buisness it’s inventory holding cost per unit
