Answer:
20; $1 billion
Explanation:
Given that,
New funds = $20 billion
Required reserve ratio = 5%
Money multiplier:
= 1/Required reserve ratio
= 1/0.05
= 20
Initial money increase by:
= Funds wants to be in the money supply × Required reserve ratio
= $20 billion × 5%
= $1 billion
Therefore, the Fed should initially increase $1 billion in the money supply.
Answer:
skimming prices
Explanation:
Based on the scenario being described it can be said that it can be concluded that Timber Guitars has adopted the strategy of skimming prices. This is a a pricing strategy in which a company or marketer sets a relatively high starting price for their products in the beginning of introducing it into the market, then only after some time has passed do they begin to lower prices slowly. Which is what Timber Guitars has done by placing the guitar at a very high price and only lowering it after a good quantity were sold.
Answer:break-even point
Explanation:At the break-even point, total contribution margin must equal total fixed costs
To solve for the break-even point in units, divide the total fixed costs by the unit contribution margin:
Total fixed costs/unit contribution margin = break even units
To find the break even sales revenue, take the total fixed costs and divide by the contribution margin ratio. This gives the dollars of sales revenue needed in order to break even as shown above.
<span>Government Revenue: the Sources. The governments in the US collect about $4.2 trillion
in a year income and payroll taxes. Income tax is where governments
collect the most tax: in federal, state, and local income tax they will
collect about $2.6 trillion in 2018.</span>
