Answer:
See below.
Explanation:
For a, first we calculate the credit multiplier of the economy,
Credit multiplier = 1 / reserve ratio
Credit multiplier = 1 / 0.25 = 4
This means that any change in money supply will be 4 times as much in the economy, hence to induce a change of $120 billion, the Fed will decrease the money supply by 120/4 = $30 billion. This will increase the interest rates just enough to stabilize aggregate demand.
For b, we again start by calculating the credit multiplier.
Credit multiplier = 1/0.10 = 10
Since the Fed want to stimulate investment, it needs to use an expansionary monetary policy.
The Fed thus increases the money supply by 150/10 = $15 billion.
This will have the total effect of 150 billion on the whole thus achieving the Fed's objectives.
Hope that helps.
Answer: 1/1.8
Explanation:
From the question, we are informed that 1 British pound can be exchanged for 180 cents of U.S. currency. To get the fraction that should be used to compute the indirect quotation of the exchange rate expressed in British pounds, we have to change the 180 cents to dollars first.
Since 100 cents = 1 dollar, 180 cents = 1.8 dollars. Therefore, fraction should be used to compute the indirect quotation of the exchange rate expressed in British pounds will be:
= 1/1.8
Answer:
(C) Estimating and managing future demand.
Explanation:
Marketing is basically analyzing the demand of the consumers and then supplying it at maximum to get the maximum profit.
This involves some main steps, in which the most essential is the planning, which involves about estimating and managing the demand and then the entire plan of production, supply of commodity.
Thus, the most important step in marketing is to estimate the demand and supply, and then managing the future demand basically.
