Answer:
Reserve requirement = 20% or 0.250
Simple money multiplier = 1/Reserve Ratio = 1/0.2 = 5
Note that,
Increase in money supply = Increase in total reserves * Simple money multiplier
$100 Billion = Increase in total reserves * 5
Increase in total reserves = $20 billion
This means that the federal reserve should decrease the reserve requirement by purchasing $20 billion worth of US government bonds from banks, which will lead to increase of $100 billion in money supply.
Examples:
1.) Having a stain on your rug there's only so much you can get out before your damaging your rug with cleaner
2.) Babysitting and having the child miss there mom, there's only so much you can do to try to calm him/her down
3.) Watering plants, if you haven't watered plant in a long time so you give them extra water, if you keep giving the plant extra water it will eventually drown and die.
Answer:
The answer is: Supply curves must reflect all costs of production, and demand curves must reflect consumers´ full willingness to pay.
Explanation:
The characteristics of a competitive market are:
- Many buyers and sellers
- Companies make a similar product.
- Both buyers and sellers have access to perfect information about price.
- No transaction costs.
- No barriers to entry into or exit from the market.
Theoretically if all of the above conditions occur, profit maximizing companies will combine with utility maximizing consumers, and markets will tend to produce efficient outcomes.
According to the National Center for Educational statistics, approximately 90-99% of children age 14-15 are enrolled in school (this does not measure the number that actually attend school).
The profit margin is the financial gain from a sale after the costs of providing the sold product have been deducted. Thus, the statement is true.
<h3>What is the profit margin?</h3>
Profit margin is the portion of sales that a company keeps after all costs are subtracted. It essentially displays the percentage of each dollar of sales that is kept as profit. A 15% profit margin, for instance, means that a company keeps $0.15 from every dollar of sales produced.
Comparing the firm's operations to those of a best-in-class company, maybe in a different industry, is another way to increase your profit margin. This comparison could point out several operational tweaks that could be done to raise profit margins.
Learn more about profit margin, here:
brainly.com/question/16999019
#SPJ1
