Answer:
False
Explanation:
Because the injunction is the legal remedy that the special court's judge orders not the jury. The order enforce a party to do what must be done or refrains it from doing specific acts that harms the other party. So saying that Doorway sought the court injunction in which the jury decides the right course of action is incorrect because injunction is the warning of judge not of jury.
The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.
Given,
The Federal Reserve sets the reserve requirement at 20%.
Banks hold no excess reserves, and no additional currency is held.
- The money multiplier displays the amplitude of the change in the money supply as a result of the addition of new reserves to the banking system.
- Banks use the money they are not obligated to retain in reserve to make loans, and the borrowed money shows up on other customers' deposit accounts.
- In macroeconomics, the money multiplier is significant because it controls the money supply, which influences interest rates.
- Because it affects monetary policy and the stability of the banking industry, it is also significant in the banking industry.
The money multiplier formula can be used to calculate the total amount of new deposits or money created.
Money multiplier = 1/reserve ratio
= 1/0.20
= 5
change in Total money supply = Money multiplier × change in reserves
= 5 × $400 million
= $2,000 million
Hence, The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.
Learn more about Federal Reserve Bank:
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Answer:
It is called <u>discounting</u>
Explanation:
Hope your day goes well !!! :)
Answer:
$8,181.81
Explanation:
Data provided in the question:
Amount deposited in the checking account = $1,800
Required reserve ratio = 0.220
Now,
Change in the checking deposits is calculated as:
⇒ ( Amount deposited ) × ( Money multiplier )
also,
Money multiplier = 
or
⇒ Money multiplier = 
or
⇒ Money multiplier = 4.54
Therefore,
Change in money supply = $1,800 × 4.54
or
⇒ Change in money supply = $8,181.81
