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KonstantinChe [14]
2 years ago
10

The money multiplier is equal to: Question 8 options: a) the ratio of the monetary base to the money supply. b) the money supply

divided by the reserve ratio. c) about 3.9 in the United States. d) the ratio of the money supply to the monetary base.
Business
2 answers:
nignag [31]2 years ago
8 0

Answer:

D.The ratio of the money supply to the monetary base

Explanation:

Money multiplier: It is also called monetary multiplier. It refers to how an initial deposit leads to a greater final increase in the total money supply.

It is the ratio of increase or decrease in the money supply in relation to a proportional increase or decrease in deposits.

Money multiplier can be calculated by dividing change in total money supply by change in monetary base.

That is,

Money multiplier=change in total money supply÷ change in monetary base

The multiplier effect refers to the proportional amount of increase or decrease in final income that results from an increase or decrease in spending.

ycow [4]2 years ago
6 0

Answer:

d) the ratio of the money supply to the monetary base.

Explanation:

Money multiplier is the maximum change in checkable deposits (extra money) resulting from an increase in bank reserves by one dollar.

Money multiplier are enhanced by the central bank.

Additionally, the money multiplier is equal to the ratio of the money supply to the monetary base. This simply means that it is equal to one (1) divided by the required reserve ratio;

MM = 1 / (required reserve-deposit ratio).

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6 0
1 year ago
Signal mistakenly produced 1,075 defective cell phones. The phones cost $70 each to produce. A salvage company will buy the defe
kow [346]

Answer: Rework the phones

Explanation:

The phones have already been produced so the cost price of $70 does not matter as it is a sunk cost.

The decision the company makes between scrap and reworking will depend on which option bring in more money.

Scrap = $39

Reworking:

= Price after reworking - Cost to rework

= 146 - 82

= $64

Incremental income of reworking over scrap:

= 1,075 * (64 - 39)

= $‭26,875‬

<em>Signal makes an incremental income of $‭26,875‬ if they rework the phones so they should do that. </em>

5 0
2 years ago
Use the following information to answer questions 10 – 14. Suppose South Korea can produce 100 computer chips with 12 hours of l
Andrew [12]

Answer:

100 bed linens

Explanation:

Opportunity costs of South Korea:

  • Computer chips = 100 chips / 12 hours of labor = 8.33 computer chips per hour of labor.
  • Bed linens = 50 chips / 6 hours of labor = 8.33 bed linens per hour of labor.

Since both products require the same amount of labor hours (8.33 labor hours per unit), then the opportunity cost of producing 100 computer chips is 100 bed linens.

Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another alternative.

7 0
2 years ago
One of the major challenges facing companies today is to keep the customers they already have since there are fewer customers to
maria [59]

Answer: d. the costs of attracting new customers are rising.

Explanation:

Due to the fact that companies always want to keep their old customers and ensure customer loyalty, they try as much as possible to satisfy them and meet their needs.

Due to this reason, the cost of attracting new customers are high. Companies go through a lot of processes to get new customers such as promotion, advertisement to attract new customers etc. The cost involved are typically high.

8 0
2 years ago
If you are planning to carry a large balance on your credit card which of the following credit card features should you look for
bija089 [108]
The correct answer would be a LOW APR. If you are planning to carry a large balance on your credit card the credit card feature that should you look for is with a low APR. Other options for this question include low annual fees, lots of credit card rewards and a <span>large credit limit. Hope this answer helps.</span>
4 0
2 years ago
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