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sesenic [268]
3 years ago
10

Suppose that the central bank has increased the money supply such that there is an additional $ 868981 in excess reserves. If th

e reserve ratio is 11 percent, what is the maximum increase in money supply? Round your answer to the nearest dollar. $
Business
1 answer:
Olin [163]3 years ago
3 0

Answer:

$7,899,827

Explanation:

The computation of the maximum increase in money supply is shown below:

Data given in the question

Additional value in excess reserves = $868,981

Reserve ratio = 11%

By considering the above information, the maximum increase in money supply is

= Additional value in excess reserves × 100 ÷ reserve ratio

= $868,981 × 100 ÷ 11

= $868,981 × 9.09

= $7,899,827

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What is the double meaning in atticus' statement that "this case is as simple as black and white"?
son4ous [18]
<span>he means that it is as simple as black people being subordinate to white people



i hope this helps you
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6 0
3 years ago
1. A business acquaintance promises to deliver a $20 bill to you one year from today. How much should you be willing to pay toda
riadik2000 [5.3K]

Answer and Explanation:

The computation is shown below;

1. The willing amount to pay for the promise should be less than $20 that represents the time value of money

2. Now the present value is

= Received amount × discounting factor at 6% for 3 years

= $1,000 × 0.839

= $839

3. Now the interest rate is

As we know that

Future value = Present value × (1 + rate of interest)^number of years

$1,000 = $863.84 × (1 + rate of interest)^3

rate of interest =5% approx

6 0
3 years ago
6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transa
jekas [21]

Answer:

a.

  • The quality of goods available to consumers
  • The costs of air and water pollution
  • The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government

b. investment; decreases; no overall change

Explanation:

a. GDP only measures goods that have monetary value so when a good cannot be properly quantified in terms of cash, it is difficult to account for it in GDP. Also, even if the good has monetary value for the Government was unaware of it, they will be unable to use it in the calculation of GDP.

For these reasons, the quality of goods available to consumers, the costs of air and water pollution and the value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government will not be a part of GDP calculation.

b.<em> When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the </em><em><u>investment</u></em><em> component of GDP while also </em><em><u>decreasing</u></em><em> net exports by the same amount. Therefore, the purchase of wood from Brazil causes </em><em><u>no overall change </u></em><em>in US GDP. </em>

Purchasing raw materials for use in production is considered Investment by GDP. However, since it was imported it will reduce Net Exports which means that the transaction would cancel itself out in the GDP calculation as it would both increase investment and decrease Net exports by the same amounts.

8 0
3 years ago
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based)
Valentin [98]

Solution :

a). Operating the income using traditional costing system

Products        Sales revenue($)           Traditional($)         Operating income($)

                             ( A )                                 ( B )                           ( A - B )

540X                   198,200                         54,440                       143,760

137Y                    158,700                         49,090                        109,610

249S                   83,190                            11,290                          71,900

b). Operating income using the activity-based costing system

Products        Sales revenue($)           Traditional($)       Operating income($)

                             ( A )                                 ( B )                           ( A - B )

540X                   198,200                         45,520                       152,680

137Y                    158,700                          39,290                        119,410

249S                   83,190                            30010                          53,180

5 0
3 years ago
EBook
KonstantinChe [14]

Answer:

Cost Flow Methods

Gross profit and ending inventory on April 30 using:

                                                          Gross Profit     Ending Inventory

(a) first-in, first-out (FIFO)                     $75                   $546

(b) last-in, first-out (LIFO)                       $71                   $542

(c) weighted average cost method     $73                   $544

Explanation:

a) Data and Calculations:

Item Beta   Cost

April 2  Purchase   $270

April 15  Purchase   272

April 20  Purchase 274

Total                      $816

Average cost per unit = $272  ($816/ 3 units)

Assume that one unit is sold on April 27 for $345

Gross profit and ending inventory on April 30 using:

                                                          Gross Profit            Ending Inventory

(a) first-in, first-out (FIFO)                 $75 ($345 - $270)  $546 ($816 - $270)

(b) last-in, first-out (LIFO)                   $71 ($345 - $274)   $542 ($816 - $274)

(c) weighted average cost method $73 ($345 - $272)  $544 ($816 - $272)

Ending inventory = Cost of goods available for sale Minus Cost of goods sold

Gross profit = Sales Minus Cost of goods sold

3 0
2 years ago
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