A borrowed reserves target is <u>procyclical</u> because increases in income <u>increase</u> interest rates and discount loans, causing the fed to <u>increase</u> the monetary base, and everything else held constant.
<h3>
What are interest rates?</h3>
- The amount a lender charges a borrower is called an interest rate, and it is expressed as a percentage of the principal, or the loaned amount.
- Typically, a loan's interest rate is expressed as an annual percentage rate, or APR (APR).
- A savings account or certificate of deposit earnings at a bank or credit union may also be subject to an interest rate (CD).
- The interest received on these deposit accounts is measured in annual percentage yields (APY). Simple interest is used in most mortgages.
- Compound interest, which is applied to both the principle and the accrued interest from earlier periods, is used in some loans, nevertheless.
- The interest rate will be lower for a borrower who the lender deems to be low risk.
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<span>I think brands like Amazon and Red Stripe do a good job of targeting my age group. Amazon has clever commercials for their Echo device and beer is always being marketed as a fun item. I think brick & mortar stores could do better by advertising locally more.</span>
This is known as face value or par value.
The chip manufacturer can maximize the monthly profit by using the objective function: z = 6X₁ + 7X₂ + 10 X₃
An objective function is a function that has the goal of maximizing or minimizing the model's value based on the relationship between the variables in the function.
The term "decision variables" refers to a group of variables that are responsible for regulating the objective function.
The decision variable for the quantity of the product 1, 2, 3 manufactured can be expressed as:
The objective function used in maximizing the profit is:
This is subjected to the constraint:
- 2X₁ + 3X₃ ≤ 120 (Tech A time and manufacturing limitation)
- 2.5X₁ + 3X₂ ≤ 120 (Tech B time and manufacturing limitation)
- 4X₂ ≤ 120 (Tech C time and manufacturing limitation)
- 3.5X₂ ≤ 120 (Tech D time and manufacturing limitation)
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