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amm1812
3 years ago
10

Banks can create an unlimited amount of money. True or false, and why?

Business
1 answer:
Eduardwww [97]3 years ago
4 0
Could be true. Banks use the stored money to invest, and if they make the right investments, theoretically they can have excess in money, investing more with the excess, and this keeps happening.
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What kind of inhibitor is a transition state analog usually classified as?
Usimov [2.4K]
<span>An enzyme inhibitor are chemical compounds with a chemical structure that resembles the transition state of a substrate molecule in an enzyme-catalyzed chemical reaction. The inhibitor can be designed according to the determined transition state structures or intermediates.</span>
4 0
3 years ago
When a firm produces 50,000 units of output, its total cost equals $6.5 million. When it increases its production to 70,000 unit
Komok [63]

Answer:

The marginal cost of an additional unit of output is $145

Explanation:

The computation of marginal cost of an additional unit of output is shown below:

= Change in total cost ÷ change in production level

where,

Change in total cost = Increased cost -  previous cost

                                  = $9.4 million - $6.5 million

                                  = $2.9 million

Thus, change in total cost is $2.9 million

And, change in production level = New production level - existing production level

= 70,000 - 50,000

=20,000

Thus, change in production level  is 20,000

Now,

Apply the above values in the formula which is equals to

=  $2.9 million ÷ 20,000

= $145

Hence, the marginal cost of an additional unit of output is $145

8 0
3 years ago
Byron Corporation forecasts that its income will be $21,000 next year. The firm pays out 30 percent of earnings as dividends to
noname [10]

Answer:

RE break point = $24500

Explanation:

21,000 net income

30% OF Earnings as dividends

21,000 x 30% = 6,300 dividends

Retained Earnings (assuming no previous beginning value)

21,000 - 6,300 = 14,700

RE break point = 14,700/0.6 = 24500

What does the $24,500 mean?

This mean that the company can raise financing for this ammount without changing their capital structure (60% equity 40% debt)

If the company wants to finance for more, it will need to raise new shares or chance their capital structure, and therefore the WACC will change

8 0
3 years ago
The table below contains data for the country of batterland, which produces only waffles and pancakes. the base year is 2013 . p
ArbitrLikvidat [17]

Firstly, you should calculate the prices of your market basket, which basically means multiply all the goods with their prices and then add them together in their respective years. This would give you $260, $440, $690 and $1200 in the years 2010 to 2013 respectively. (follow along by noting everything down)

We see that the base year is 2013, therefore if we want to calculate the inflation rate from 2010 to 2011, we have to calculate their price indices. We do this by dividing the maket basket of our chosen years by the market basket of the base year, therefore the price index of 2010 is $260/$1200, giving us 21.6. The price index of 2011 would be $440/$1200, giving us 36.6. To calculate the inflation rate, you find the difference between your two price indices and divide it by the former year, which would be 36.6 - 21.6 / 21.6 x 100, giving us the inflation rate of 69.2%.

5 0
3 years ago
Choose the correct choice; At the current price level, producers supply $375 billion of final goods and services while consumers
Solnce55 [7]

Answer:

The price level is A) Above equilibrium.

Explanation:

Normally, every economist believe that a lower price attracts a higher demand. This is so when the behaviour of consumers are measured when choosing a product.  Many consumers go for a low priced product or cheaper product over a high priced product or expensive product irrespective of quality, taste or satisfaction derived from consuming them.

Price relating to market or in terms of quantity demanded and quantity supplied is referred to as equilibrium price or equilibrium quantity. When the market price is below equilibrium, quantity supplied of a product will be less than the quantity demanded for it because the price of goods are cheaper. But when price is above equilibrium, quantity supplied will be greater than quantity demanded because the price of goods is high.

7 0
3 years ago
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