Answer:
Reserve requirement = 20% or 0.250
Simple money multiplier = 1/Reserve Ratio = 1/0.2 = 5
Note that,
Increase in money supply = Increase in total reserves * Simple money multiplier
$100 Billion = Increase in total reserves * 5
Increase in total reserves = $20 billion
This means that the federal reserve should decrease the reserve requirement by purchasing $20 billion worth of US government bonds from banks, which will lead to increase of $100 billion in money supply.
Answer:
<u><em>Part 1. </em></u>
- <em>Average cost per day of a three-day pass</em> = $53.33/day per person
- <em>Marginal cost of adding the third day </em>= $190 - $160 = $30 per person
<em />
<em><u>Part 2.</u></em>
- <em>Group's marginal cost of switching from the two-day pass to the three-day pass</em> = $180
Explanation:
The total <em>cost</em> is the <em>admission charge</em> ($60) plust the cost of the pass ($100 or $130).
For a <em>two-day pass</em> that is: $60 + $100 = $160, per person
For a <em>three-day pass</em> that is: $60 + $130 = $190, per person
<u><em>Part 1. The average cost per day of a three-day pass per person. </em></u>
The <em>average cost</em> is the total cost divided by the number of days.
- <em>Average cost</em> = $160/3days = $53.33/day per person
The <em>marginal cost of adding the third day</em> per person is found by subtracting the total cost for two days from the total cost for three days:
- <em>Marginal cost of adding the third day</em> = $190 - $160 = $30 per person
This says that althoud the average cost for the three days is $53.33 the cost of adding the third day is $30, which is much lower; thus, it is a good deal to buy a three-days pass, as they are interested in spending a lot of time there.
<u><em>Part 2. The group's marginal cost of switching from the two-day pass to the three-day pass</em></u>
<em></em>
Since the <em>marginal cost of switching from the two-day pass to the three-day pass</em> is $30 per person, the marginal cost for the 6-person group is 6 times $30:
- 6 persons × $30/person = $180.
Answer:
Missing options of the stated question are:
- Best all-inclusive vacation
- All-inclusive family Paris vacation
- All-inclusive vacation
- All-inclusive Paris holiday
The correct answer is option D.
All-inclusive Paris holiday.
Explanation:
Search terms are the list of terms that a user use that bring results of advertisements. This tool is used by the search engine to trigger and match the keywords used by the user and that appears in the keywords of an advertisement. The search engine uses the search terms entered by the user and the keywords stated by an advertiser in his/her advertisement and brings forth the matching results based on the keywords.
<u>In the given case, Jennifer limits her audience for an 'all-inclusive vacation to Paris.' So, the correct search term that will match with her keywords in the advertisement will be 'all-inclusive Paris holiday.' This search term will match with the keywords of Jennifer's advertisement</u>.
Thus the correct answer is the last option.
Answer:
$80 lost for not working
Explanation:
Opportunity cost refers to the sacrificed benefits as a result of preferring on a particular option over another. As people make choices, the forfeit one option in favor of another. Opportunity cost is the missed value of the next best alternative.
For John, he has a choice between working or going to the concert. He has two tickets worth $50. Working would mean her twice her regular income, which is $20 per hour. If he works for four hours, his total earning will be $80. If John chooses to go to the concert, he will miss the opportunity to earn $80. The opportunity cost will be the missed $80 that he would have received from working.
Answer:
rise by $40 billion
Explanation:
Calculation to determine what the investment will be
Investment=$100 billion*(100%-60%)
=$100 billion*40%
=$40 billion
Therefore the investment will rise by $40 billion
