If the banking system does NOT want to hold any excess reserves, $250,000 will be <u>added </u>to the money supply.
<h3>What is an excess reserves?</h3>
Excess reserves is known to be the capital reserves that is said to be held by a bank or financial institution and it is one that is too much or is in excess of what is needed by regulators, creditors, or others.
Since there is $25,000 worth of U.S. Treasury bills, one will multiply it times 10 = $250,000
Therefore, If the banking system does NOT want to hold any excess reserves, $250,000 will be <u>added </u>to the money supply.
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Answer:
A. average total cost is rising.
Explanation:
Whenever marginal cost is more than average cost it means it costs more to produce a unit now compared to the average cost of the previous units. Lets assume that a company produces 3 units of a good.
The first unit costs $1
The second unit costs $2
The third unit costs $3.
The average cost is (1+2+3)/3=2
Now if the marginal cost for producing a unit is more than the average cost for example if the marginal cost is 4, then this will mean that average total cost is rising. we can mathematically check this.
The first unit costs $1
The second unit costs $2
The third unit costs $3.
The fourth unit costs $4
Average cost= (1+2+3+4)/4=10/4=2.5
Here we see that the average cost increased from 2 to 2.5 because marginal cost was greater than average cost.
Answer:
The increase in earnings is $136511.56
Explanation:
Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:
Profit on lease=present value of lease payments-costs
=$274149-$156000
=$118149
However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:
Interest=($274149-$44617)*8%
=$18362.56
Please note that interest is charged after lease payment as lease payment is made in advance not in arrears.
Conclusively, the increase in earnings is $118149+$18362.56
That is $136511.56
Answer:
Perfectly inelastic
Explanation:
A demand is perfectly inelastic when quantity demanded does not change in response to a change in price.
Answer:
1. c) b>d
d) c>g
2. No dominant strategy equilibrium is also a Nash equilibrium.
Explanation:
Payoff matrix are used in business as it represent the possible outcomes of the decisions made. In the given scenario player 1 and player 2 have different outcomes based on the game matrix. The player 1 will get best possible payoff when he falls in Top Left matrix. This is dominant strategy which must be Nash equilibrium.
