Which best describes the effect of outsourcing on the labor market in the United States

Answer the question on the assumption that the legal reserve ratio is 20 percent. suppose that the fed sells $500 of government

mel-nik [20]

The sale and purchase of government securities by the Fed would leave reserves unchanged.

<h3>What is the effect of the purchase and sale of government securities?</h3>

The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.

One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.

Change in reserve = ( value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)

($500 / 0.2) - (500 / 0.2) = 0

To learn more about reserve ratio, please check: brainly.com/question/6831267

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7 0

2 years ago

In the last ________, there has been rapid improvement in the spread of technology to peripheral and semi-peripheral nations, an

12345 [234]

Answer:

two decades

Explanation:

The World Bank suggested technological progress and economic growth rates were contained in their 2008 report which further recognizes that the rural and low-technology products such as corn can gain from the different technological innovations that are happening while mobile banking can aid those that require low technology market vending. All these are the outcome of Technological globalization.

8 0

3 years ago

Read 2 more answers

Tops Co. purchases equipment for $12,000 and has been using straight-line depreciation, estimating a 5-year life and $500 salvag

ololo11 [35]

Answer:

Annual depreciation= $1,850

Explanation:

Giving the following formula:

Purchase price= $12,000

Salvage value= $500

Useful life= 5 years

<u>First, we need to calculate the annual depreciation and accumulated depreciation:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (12,000 - 500) / 5

Annual depreciation= 2,300

Accumulated depreciation (2 years)= 2,300*1= 4,600

<u>Now, we can determine the annual depreciation with a 4 more years of useful life:</u>

Book value= 12,000 - 4,600= 7,400

useful life= 4 years more

Annual depreciation= 7,400/4

Annual depreciation= $1,850

6 0

2 years ago

Current predictions indicate that if nothing is done the Social Security trust fund will run out in 2035. After this point, reti

Tresset [83]

Answer:

a. This behaviour will decrease the AD. This is because as people will start saving more, they will spend less. Due to this, AD curve will shift backwards or AD will decrease.

b. If people start saving more, they will consume less. Thus, the consumption component will reduce.

c. This will change the saving habits. This is because people will become aware of the fact that they need to save for their old age because the social security system will not be enough to meet their demands.

5 0

3 years ago

Here's Mia's profit for the month. Decide how much Mia should put into her savings account.

Yuliya22 [10]

Answer:

Here's Mia's profit for the month. Decide how much Mia should put into her savings account.

From the analogy, it is expedient of Mia to save $150 after accruing the sum of $1500 as profit gained.

Explanation:

Most often, it is economically wise to save 10% of ones profits, this enables the saving balance to quickly increase over time.

4 0

2 years ago