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Maru [420]
3 years ago
9

If the M1 multiplier is 3 and the Fed engages in open-market sales in the amount of $3 billion, then M1 will Group of answer cho

ices increase by $3 billion. decline by $9 billion. decline by $3 billion. increase by $9 billion.
Business
1 answer:
vladimir1956 [14]3 years ago
7 0

Answer:

increase by $9 billion.

Explanation:

If the M1 multiplier is 3 and the Fed engages in open-market sales in the amount of $3 billion, then M1 will increase by $9 billion.

The ratio of money supply to monetary base is called the money multiplier.

<u>The money-multiplier process explains how an increase in the monetary base causes the money supply to increase by a multiplied amount</u>

Hence in the Scenario, the money supply 9 billion because $3 billion (monetary base) x 3 (money multiplier) = $9billion

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iVinArrow [24]

Answer:

the annual after-tax cost of financing the purchase of the home is $23,638.40

Explanation:

The computation of the annual after-tax cost of financing the purchase of the home is shown below:

= Installment amount - tax saving

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= $33,200 - $9,561.60

= $23,638.4

hence, the annual after-tax cost of financing the purchase of the home is $23,638.40

We simply applied the above formula

6 0
3 years ago
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