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3 years ago

Suppose the reserve requirement is 10%.

Business

1 answer:

mestny [16]3 years ago

3 0

Answer:

B. more reserves, thus increasing the money multiplier and increasing the money supply.

In a fractional-reserve banking system, banks create money when they make loans. The more money they have available to make loans, the more money they create.

If the Fed reduces the reserve-requirements, banks will have more reserves available to loan out, increasing the money multiplier, and thus, the money supply.

A. rarely changes the reserve requirement and does not use the reserve requirement as a major monetary policy tool.

The Fed rarely uses this monetary policy tool because it is the most powerful one. Changing the reserve requirements effectively reduce or increase the money supply like no other monetary policy tool, therefore, the effects can be dramatic, and its use is a sign that all other tools have been exhausted (open-market operations, and discount window mainly).

Explanation:

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In three to four sentences, explain how an increase in government spending can increase the national debt.

IgorLugansk [536]

If the government spends more money, but doesn't increase taxes, they have to borrow money from other countries in order to spend it. If we borrow money from other countries, then our country owes their country. When we owe something, that is called debt.

4 0

3 years ago

Read 2 more answers

Grand Lips produces a lip balm used for cold-weather sports. The balm is manufactured in a single processing department. No lip

77julia77 [94]

Answer:

a. see attachment

total equivalent units : Materials = 30,500 units and Conversion Costs = 16,860

cost per equivalent unit : Materials = $0.14 and Conversion Costs = $0.30

(a) units completed and transferred to Finished Goods = $6,732

(b) units still in process at June 30 = $1,196

Journals

Work In Process :Direct Materials $4,305 (debit)

Raw Materials $4,305 (credit)

Being Raw Materials used in Production

Work In Process :Direct Labor $3,320 (debit)

Salaries Payable $3,320 (credit)

Being Labor used in Production

Work In Process ; Overheads $1,738 (debit)

Overheads $1,738 (credit)

Being Overheads Assigned to Production

Finished Goods $6,732 (debit)

Work In Process $6,732 (credit)

Being Units transferred to Finished Goods

Explanation:

Calculation of Equivalent units of Production in respect with Raw Materials and Conversion Costs

1. Materials

Ending Work In Process (5,200 × 100%) 5,200

Completed and Transferred Out (15,300 × 100%) 15,300

Equivalent units of Production in respect with Raw Materials 30,500

2. Conversion Costs

Ending Work In Process (5,200 × 30%) 1,560

Completed and Transferred Out (15,300 × 100%) 15,300

Equivalent units of Production in respect with Conversion Cost 16,860

Calculation of Cost per Equivalent unit of production in respect with Raw Materials and Conversion Costs

Unit Cost = Total Cost ÷ Total Equivalent units

1. Materials

Unit Cost = $4,305 ÷ 30,500

= $0.14

2. Conversion Costs

Unit Cost = ($3,320 + $1,738) ÷ 16,860

= $0.30

3. Total unit cost

Total unit cost = Material Cost + Conversion Cost

= $0.14 + $0.30

= $0.44

Calculation of costs assigned to (a) units completed and transferred to Finished Goods and (b) units still in process at June 30.

(a) units completed and transferred to Finished Goods

Total Cost = units completed and transferred out × total unit cost

= 15,300 × $0.44

= $6,732

(b) units still in process at June 30.

Total Cost = Materials Cost + Conversion Cost

= $0.14 × 5,200 + $0.30 × 1,560

= $1,196

8 0

3 years ago

Statement: "Whenever a company’s activities reduce the quality of life for nearby homeowners, the company should be legally requ

olganol [36]

Answer:

2) assumption not made

Explanation:

The original statement does not include any assumption about what the companies are doing about this issue, it just proposes an idea of fair compensation.

maybe whoever wrote this statement believes that very few companies or none at all actually compensate homeowners for a reduction in the market value of their properties, but it doesn't state it. It is also possible that the statement assumes that companies are paying some compensations or were paying some compensations but are not willing to continue to do it since no legislation forces them to do so. The author's position is vague and not clear with respect to what the companies are currently doing.

4 0

3 years ago

Who sets the price in a monopolistic competition?

AnnyKZ [126]

Answer:

Producers

Explanation:

Monopolistic competition is a form of market competition where different producers produce goods that are largely different from each other and can not even been used as a perfect substitute for one another.

This gives each producer the opportunity to decide its prices and output . Prices are always set higher than the marginal costs and the consumer surplus are less compared to a perfectly competitive market , making monopoly competition an imperfect market.

7 0

3 years ago

The Vogt corporation paid a dividend of $4.20 on its stock in the year just ended. If the dividends are projected to grow at a r

Jet001 [13]

Answer:

cost of equity = 13%

Explanation:

With the info given, we will use cost of equity formula from Dividend Growth Model. THis is given by:

$k_e=\frac{D_1}{P_0}+g$

Where D_1 is the next year dividend or D_1 = D_0(1+g)

P_0 is current stock price

g is the growth rate

Since D_0 (dividend this year) is 4.20 and g = 6.4% or 0.064, we can calculate D_1:

$D_1=D_0(1+g)=4.2(1+0.064)=4.47$

Current share price is 68, so we can now calculate cost of equity:

$k_e=\frac{4.47}{68}+0.064=0.13$

Hence,

cost of equity = 13%

8 0

3 years ago