Answer:
Explanation:
• Initially, As a result of the bond purchase, money supply will increase by $100000.
The reason for the increase in money supply by $100000 is because the federal reserve bought bond of $100000 from Riggie Rich. This is an expansionary policy which will lead to more money in supply.
• As a result of Rich's deposits, the bank will able to give $90000 more in additional loans.
The increase in the additional loans will be calculated by removing the reserve required ratio from the deposit.
= $100000 - (10% × $100000)
= $100000 - $10000
= $90000
• As a result of the purchase by the Federal reserve, the maximum increase in quantity of checkable deposits which could result throughtout the entire banking system will be $1000000.
The increase in checkable deposits will be the change in reserve multiplied by 1/RRR. This will be:
= $100000 x 1/10%
= $100000 × 1/0.1
= $100000 x 10
= $1000000
Answer:
Option A is correct ( Expected inflation does not change the real deficit)
Explanation:
Real deficits are real variable and it is not affected by the change in inflation rate, because inflation is nominal variable. So, nominal value of deficits can be affected, but real value of deficits will remain same.
9.5 x 10^5 = 950.000
950.000 x 20.000 = 19.000.000.000
the decimal of 19.000.000.000 is 1.9 x 10^9
hope this help
Answer:
Correct option is B) $17.10
Total overhead rate per hour = $17.10
Explanation:
Overhead rates are based on cash outflow, they are not allocated and computed based on non cash items.
Total direct labor hours = 8,900
Thus total variable overhead rate = $5.50
Total cash fixed cost = $133,500 - $30,260 = $103,240
Fixed cost overhead rate = $103,240/8,900 = $11.60
Total overhead cost per hour = Variable overhead + Fixed Overhead = $5.50 + $11.60 = $17.10
Answer:
B. NAFTA
Explanation:
North American Free Trade Agreement (NAFTA) is a regional agreement between the Government of Canada, the Government of the United Mexican States, and the Government of the United States of America that created a free trade zone.
NAFTA administers the mechanisms stipulated in the Treaty to resolve commercial disputes between national industries or the governments of the party countries in a timely and impartial manner.