Answer:
The correct answer is option D.
Explanation:
The reserve requirement is 20 percent.
The Fed purchases $100 million of U.S. securities from security dealers.
The excess reserves with banks are zero.
When fed purchased securities, this open market operation increased the reserves with banks by $100 million.
The increase in money supply
= 
= 
= 500
Answer:
97.2
Explanation:
The reason is that they want you to add 2012 from 2011 to get your answer of 9.65 then you would round up to 97 then add the .2.
Answer:
Total revenue will equal zero when the demand for a product is unit elastic. FALSE
When a firm lowers its price its total revenue may either increase or decrease. TRUE
Whenever a firm raises its price its total revenue will increase. FALSE
Whenever a firm increases its quantity sold its revenue will increase. FALSE
Explanation:
Price elasticity en the demand measures the porcentage of change in the quantity demandend when a price is changed.
When the porcentage of change in the quantity demanded is the same of the porcentage of change in the price we talk of unit elastic. The revenues will keep being the same no matter the change in the price.
When a firm lower the price of a good it can increase the revenues if the product has an elastic demand, it means that the porcentage of change in the quantity demanded is bigger than the porcentage in the change of the price, and if the product has an inelastic demand, the revenues will decrease. Price demand is inelastic when the porcentage of change in the quantity demanded is smaller than the porcentage in the change of the price.
Answer:
195,000= fixed costs
Explanation:
Giving the following information:
Sales $400,000
Margin of safety $ 100,000
Contribution margin ratio of 65%
To calculate the fixed costs, we need to use the break-even point in dollars formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
300,000= fixed costs/ 0.65
195,000= fixed costs
Answer:
d. 1.38
Explanation:
The computation of potential investment's profitability index is shown below:-
As we know that
Profitability index (PI) = PV of future cash flows ÷ Initial investment
Now
NPV = Present value of future cash flows - initial investment
$36,224 = Present value of future cash flows - $95,000
Present value of future cash flows = $36,224 + $95,000
= $131,224
So,
Profitability index = Present value of future cash flows ÷ Initial investment
= $131,224 ÷ $95,000
= 1.38
Therefore we have applied the above formula.
