1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
grigory [225]
4 years ago
5

If the reserve ratio is 10%, and banks do not hold excess reserves, when the Fed purchases $10 million of government bonds, bank

reservesA) increase by $10 million and the money supply could eventually increase by $10 million.B) decrease by $10 million and the money supply could eventually decrease by $100 million.C) increase by $10 million and the money supply could eventually increase by $100 million.D) decrease by $10 million and the money supply could eventually decrease by $10 million
Business
1 answer:
bogdanovich [222]4 years ago
5 0

Answer:

Option (C) is correct.

Explanation:

Given that,

Reserve ratio = 10%

Fed purchases government bonds = $10 million

The money multiplier:

= 1 ÷ reserve ratio

= 1 ÷ 0.10

= 10.

Increase in Money supply:

= Multiplier × Government purchases

= 10 × 10

= 100.

Therefore, the bank reserves increase by $10 million and the money supply could eventually increase by $100 million.

You might be interested in
To display desserts in restaurants, Mario Sclafani ordered refrigeration units from Felix Storch, Inc. Felix faxed a credit appl
Illusion [34]

Sclafani is a disclosed principal

<u>Principals are liable for contracts made by an agent when that contract was authorized by the principal. </u>

Explanation:

1) Who was the principal?

Sclafani is a disclosed principal

<u>Principals are liable for contracts made by an agent when that contract was authorized by the principal. </u>

<u> </u>

2) Who is the agent?

<u>The office worker </u>

3) Who is the third party?

<u>When a third party, in this case Felix, enters into a contract with a disclosed principal, in this case Sclafani, who is liable on the contract the principal alone </u>

In this case Felix alleged that Sclafani authorized the officer worker to sign and fax the credit application back to Felix. Felix likely alleged that in the event Sclafani did not give actual authority to the officer worker, the officer worker had apparent authority to contract with Felix.

Apparent authority is established when the principal leads a reasonably prudent person to justifiably believe that an agent has authority to act.

6 0
3 years ago
McKittridge Consulting pursues activities such as engaging in disciplined thinking, searching constantly for new knowledge, benc
Monica [59]

Answer:

Learning organization

Explanation:

A learning organisation is defined as one that is focused on promotion creation, acquiring, and transfer of knowledge for the clients it serves and its members.

It also constantly transforms itself by improving on its processes.

McKittridge Consulting is a learning organisation because it pursues activities such as engaging in disciplined thinking, searching constantly for new knowledge, benchmarking, and sharing ideas throughout the organization via information systems.

7 0
3 years ago
by using Philips curve, If the unemployment rate in the economy is steady at 4 percent per year, how does the short-run Phillips
Mashutka [201]

The prediction that the inflation rate will change is that there will be a right-ward shift of the curve to indicate that inflation is on the increase. Recall that unemployment is depicted on the x -axis, and inflation on the y-axis.

<h3>What is a Phillips curve?</h3>

The Philips curve shows an inverse relationship between unemployment and inflation.

<h3>What will happen if the unemployment rate now rises to 7 percent per year? </h3>

Because the relationship between inflation and unemployment is inverse (that is, all things being equal), if the unemployment rate now rises to 7 percent per year, the inflation rate is sure to fall.

Learn more about Phillips curve at;
brainly.com/question/4486587
#SPJ1

7 0
2 years ago
HW13. Suppose that you begin saving up to buy a car by depositing a certain amount at the end of each month in a savings account
Lana71 [14]

Answer:

$256.31

Explanation:

Interest rate per annum = 3.6%

Number of years = 4.5

No of payment per annum = 12

Interest rate per period 3.6%/12 = 0.3%

Number of period = 4.5*12 = 54

FV of annuity = 15,000

Deposit in each month (P) = FVA / ([1+r)^n - 1]/r)

Deposit in each month (P) = 15,000 / ([1+0.3%]^54 - 1) / 0.3%)

Deposit in each month (P) = 15,000 / ([1.003^54 - 1]/0.003)

Deposit in each month (P) = 15,000 / (1.175575 - 1/0.003)

Deposit in each month (P) = 15,000 / (0.175575/0.003)

Deposit in each month (P) = 15,000 / 58.525

Deposit in each month (P) = 256.3007262

Deposit in each month (P) = $256.31

3 0
3 years ago
f Microsoft sells copies of Windows in Japan and then uses the proceeds from the sale to buy bonds from the Japanese government,
Sergeeva-Olga [200]

Answer:

Net Exports Increase and net capital outflow increases.

Explanation:

When Microsoft sells copies of Windows in Japan and then uses the proceeds from the sale to buy bonds from the Japanese government. From the perspective of the United States there is an increase in the net exports from the US, because copies of Windows which are a product of the US economy is being sold in Japan.

There will also be a net outflow of capital as a result of purchase of Japanese government bonds. The capital gained from the sale of copies of Windows is not returned to the US economy, but is rather invested in the Japanese economy.

7 0
3 years ago
Read 2 more answers
Other questions:
  • Alphonse is attending college next year. He received this offer from a university. His parents told him they would pay for his r
    9·1 answer
  • What is the product?
    14·1 answer
  • Manufacturing costs other than direct materials and direct labor, and are not readily traceable to specific units or batches of
    13·1 answer
  • Customers may believe the reason you are giving them too little eye contact is because you are trying to__ or __ along.
    10·1 answer
  • Cyclical unemployment is caused by business cycle fluctuations. reducing international trade barriers, which causes some industr
    11·1 answer
  • "Rachel's Recordings reported net income of $250,000. Beginning balances in Accounts Receivable and Accounts Payable were $20,00
    13·1 answer
  • Larry Marder explains that the company may change what its focus is from year to year. For example, he mentions that if Todd McF
    13·1 answer
  • Which of the following is the best example of mockery as a tool of discriminatory treatment in​ organizations?
    10·1 answer
  • A Life and Disability Insurance Analyst must have a written agreement signed in advance stating the service to be performed for
    14·1 answer
  • The units of an item available for sale during the year were as follows: Jan 1 Inventory 22 units at 127 April 15 Purchase 138 u
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!