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Elena L [17]
3 years ago
5

Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reser

ves. Under these assumptions, the $1,500,000 injection into the money supply results in an overall increase of _________ in demand deposits.
Business
1 answer:
nataly862011 [7]3 years ago
4 0

Answer:

$7,500,000

Explanation:

Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $1,500,000 injection into the money supply results in an overall increase of $7,500,000 in demand deposits

From the stated assumptions in the question,we will use the money multiplier to calculate the eventual effect of the $1,500,000 injection into the money supply.

Money multiplier can be calculated using this formula 1/r  (r is the required reserve ratio)

Therefore, the resulting change in demand deposits is as follows:

Change in Demand Deposits = Change in Fresh Reserves ×1/r

= $1,500,000×1/0.20

= $7,500,000

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The market for land is competitive and in equilibrium at the rental rate of $500 per acre and the supply of land is perfectly in
Elina [12.6K]

Answer:

Falls by $100,000

Explanation:

In this question, we are asked to calculate and state what happens when demand for land falls and as a result, there is also a fall in rental rate.

Firstly, we cost the total of 1000 acres. The price of 1000 acres is simply the multiplication of the 1000 acres by the $500 unit price= 500 * 1,000 = $500,000

We now calculate the price or worth of the land when demand falls

This is mathematically equal to 400 * 1000 = $400,000

Now, the net economic rent fall would be $500,00 - $400,000 = $100,000

Hence, there would be a fall of $100,000 as the demand for land falls

5 0
3 years ago
U.S. businesses and those of other countries are seeking to expand around the world for many reasons. Which of the following is
Andrews [41]

Answer:

C

Explanation:

An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky

4 0
4 years ago
It is the beginning of the football season for the local college team. Martha redecorates the Coffee Collective with a theme tha
Mamont248 [21]

Answer:

Brand association

Explanation:

Brand equity refers to the value that a product receives from associating with a renowned brand. Brand association is one of the components of brand equity. Brand association refers to those images or symbols that customers identify with a brand.

Organizations try to instill positive image in the minds of customers through brand association. Here, Martha redecorates coffee collective with pictures of players and coaches as way to promote the team as audience will be be able to connect with the team through the images.

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A faculty member is retiring, and a committee has been established to select a replacement. HR conducts candidate recruitment, a
lisabon 2012 [21]

Answer:

The dean has violated the brights of other members to be picked for the violation through this act of favoritism.

Explanation:

This dean has gone ahead to rewrite David's description. By so doing he has altered the job description to favor david. This shows a bias to David in the side of this dean thereby causing him to violate the act that says that there should be no discrimination or bias of my form.

Rewriting the job description to favor david is against the ethics of the distributive justice framework which says that the distribution of goods in a society must be done In an equitable manner for all. 2 principles of this are applicable here. The rights based justice and also the legal justice. Rights based justice demands that the rights of people bare respected which the dean has clearly also violated.

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