Answer:
The largest amount by which the money supply can increase is $1,875
Explanation:
According to the given data, we have the following:
Checking/Demand Deposit = $150 (which is assumed to be the part of new money supply)
Required reserve ratio = 8% = 0.08
Therefore, first we need to calculate the money supplier as follows:
Money multiplier 1/rr
Money multiplier = 1/0.08
Money multiplier = 12.5
Hence for $150 deposited the money supply will increase by $(150×12.5) =$1,875
The largest amount by which the money supply can increase is $1,875
No Espanol English please?
Answer:
correct answer is C. 25 percent
Explanation:
solution
we relate purchasing power to the purchasing of product by consumer to investor for the prosperity of economy
so we consider here price index that is = 100
and it is rise to = 125
so that purchasing power will be decrease by x to the
and money value will be lead to %change as
money value =
.................1
money value = 1 - 0.8
money value = 0.2
money value = 20%
so we can say that when we buy with 20% than purchase power will be fall as 25% increase in the price
so correct answer is C. 25 percent
Employee A:
40 X 9.5 = $380
Employee B:
38 X 8.25 = $313.50
Employee C:
39 X 7.75 = $302.25
Total:
380 + 313.5 + 302.25 =$995.75