Answer:
a decrease in the currency-deposit ratio causes the M1 money multiplier to <u>DECREASE</u> and the money supply to <u>DECREASE</u>.
Explanation:
The currency-deposit ratio measures how much currency the banks' clients hold in the banks. A decrease in the currency-deposit ratio will always decrease the money multiplier because banks will hold less money. Inversely, an increase in the currency-deposit ratio will increase the money multiplier.
Banks "create" money when they receive deposits and then lend them to other clients, but if the amount of deposits decreases, the bank's money creating capacity decreases.
Answer:
B
Explanation:
The capital market serves as an intermediator between households and firms. In a classic economic model, households are owners of capital resources, but firms need these resources to operate. Then, the capital market allows that households rent their capital resources to firms and firms pay them back. It is a beneficial allocation of resources for households and for firms.
Answer:
a) Net Income = $490,700
b) Journal Entry
Debit Construction in process $175,000 Credit Deferred Tax Liability $52,500 Credit Retained earnings $122,500
Explanation:
a) PreTax income $701,000
Tax ( 701,000*30%) 210,300
Net Income =490,700
Deferred Tax Liability = 175,000*30% =52500
Retained Earnings = 175,000 *70% = 122,500
In economics, a factor market refers to markets where services of the factors of production are bought and sold, such as the labor markets, the capital market, the market for raw materials, and the market for management or entrepreneurial resources.
So I believe it is C
Answer:
you gave no options but according to me
Explanation:
When the demand for a product increases, businesses increase the price while decreasing the supply/quantity.