Answer:
d. Generates a change in quantity demanded.
Explanation:
Because in this case only the price is changing and all other factors are held constant the demand curve will not move and any movement that will take place will be along the demand curve. If the price increases the quantity demanded will decrease and if the price decreases the quantity demanded will increase, the reason for this is that the demand curve is downward sloping, therefore a price change will only change the quantity demanded.
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:
$21.67
Explanation:
Exhibit 21-3 is attached with the answer .Please find it.
Total cost of production includes the fixed cost and variable cost. Fixed Cost remains constant as $500 in the exhibit, but the variable cost changes with each production level.
Cost of producing 60 units
Variable cost = $800
Fixed cost = $500
Total cost = $800+500 = $1,300
Product cost per unit = Total cost / numbers of unit = $1,300 / 60 = $21.67
Answer: Salvation army
Explanation: Non profit organisations are those organisation, which perform their operation with the objective of social welfare or charity.
Salvation army is a charitable organisation having more than 1.7 million members all over the world, whom they refer to as soldiers. This organisation mainly serves to the poor and hungry.
Thus, we can conclude that the right option is D.
Answer:
implied credit spread = 1.13 %
Explanation:
given data
interest on foreign government bonds = 7.5%
current exchange rate = 28
forward exchange rate = 28.5
risk-free rate = 4.5%
solution
we get here risk free rate by the forward exchange rate that is
F = spot exchange rate × \frac{1+Rr}{1+Rs} ....................1
put here value
28.5 = 28 × \frac{1+Rr}{1+0.045}
solve it we get
Rr = 0.0637
Rr = 6.37%
so
implied credit spread = interest on foreign government bonds - risk free rate
implied credit spread = 7.5% - 6.37%
implied credit spread = 1.13 %
