Based on the information given regarding the reserve requirements, there'll be an increase in the money supply by $4000.
A reserve requirement simply means a regulation by the Central Bank where commercial banks set a minimum amount that must be held in liquid assets.
Since the reserve requirement is 25%, a new deposit of $1,000 leads to a potential will lead to an increase in the money supply of $4000. This was calculated thus:
= $1000 / 25%
= $1000 / 0.25
= $4000
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Solution :
Depreciation rates 16.67% 16.67% 16.67% 16.67% 16.67% 16.67%
(books)
Depreciation $100000 $100000 $100000 $100000 $100000 $100000
(books)
Depreciation $35000 $35000 $35000 $35000 $35000 $35000
tax shield (books)
Depreciation rate 20% 32% 19.20% 11.50% 11.50% 5.80%
(tax)
Depreciation $120000 $192000 $115200 $69000 $69000 $34800
(tax)
Depreciation $42000 $67200 $40320 $24150 $24150 $12180
tax shield (tax)
Answer:
b. an economic profit of 100%.
Explanation:
A monopoly is when there is only one firm operating in the industry. There are high barriers to entry of firms in a monopoly. Profit is maximised where MR = MC.
Economic profit is affected by the entry or exit of firms into the industry in the long run. Due to the high barriers to entry, a monopoly earns economic profit in the long run.
I hope my answer helps you
Answer:
The best recommendation to be made to this client is to do nothing.
Explanation:
Investment in stock is a highly risky investment because price of stock often fluctuates which can make an investor to lose a lot of money.
From the question, the client is already old at age 67 with a low income and he does not have any other liquid assets apart from the annual income of $25,000, mainly from social security and interest on funds held in a bank savings account.
Since losing so much money through investment in stock is not affordable to him, the best recommendation to be made to this client is to that he should do nothing.
The answer is LLC or also known as Limited Liability
Company. This type of hybrid legal entity has the characteristic of mixed
characteristics of a partnership, sole proprietorship and even a company in
which they have a limited liability that could also be similar to shareholders
in a corporation.
