Answer and Explanation:
The computation of the reserve requirement is given below;
Required reserves is
= Deposits - loans - excess reserves
= $400 - $362 - $6
= 32 million
And,
Required reserve ratio is
= Required reserves ÷ Deposits
= 32 ÷ 400
= 8%
In this way, it should be determined so that the correct value & percentage could come
The American enterprise is driven by the desire for profit. <span>The desire for profit is what fuels free enterprise and capitalism.
</span>Basic principles of the free enterprise are profit motive (t<span>he force that encourages people and organizations to improve their material well-being)</span>, open opportunity (the concept that everyone can compete in the marketplace)<span> and economic rights.
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Answer:
- b. $11, the variable cost.
- d. $25, the market price.
Explanation:
1. The Electrical Division has excess capacity so supplying the Lawn Mower Division can be done and they will still be able to sell to outside customers. They should therefore only charge the variable cost to make component K32 which is $11 as they are in the same company.
2. The highest acceptable transfer price that the Lawn Mower division would pay is the market price of $25. At a price higher than this, it would make no sense to source the component from the Electrical division because the Lawn Mower division could simply source it from the market and save on costs.
Answer: a change in the price level.
Explanation:
A shift in the aggregate supply curve is caused by non-price changes such as real wages of the workers, tax, technological innovation, productivity level etc.
The change in price will only result in the movement along the supply curve, which is also referred to as the change in quantity supplied. A change in price will not cause a shift on the aggregate supply curve.
Therefore, option A is the correct answer.
