Answer:
B. giving loans
Explanation:
The reserve requirement system requires commercial banks to maintain a small fraction of their deposits as a reserve. Only a small percentage of the checkable deposits is required to be held in the banks as reserves. The reserves requirement fractions vary with the monetary policy in place.
The percentage of reserve requirement ranges from 3% to 10%. It would hardly get to 20%. The rest other bigger percentage ( over 80%) is available to be used to create loans.
Answer:
New Keynesian economists critique rational expectations by arguing that short-term wage stickiness is brought about by
b. imperfect information and efficiency wages.
Explanation:
The assumption in macroeconomic theories is that economic agents, households, and companies exercise rational expectations. The New Keynesian economics posits that rational expectations have become distorted as a result of market failure, arising from asymmetric information and imperfect competition, thus questioning the ability of markets to self-regulate and self-correct.
Answer: 41.90%
Explanation:
First calculate the risk free rate:
Required return = risk free rate + beta * (Market return - risk free rate)
28.95% = rf + 1.85 * (18% - rf)
28.95% = rf + 33.3% - 1.85rf
28.95% = -0.85rf + 33.3%
0.85rf = 33.3% - 28.95%
rf = 4.35%/0.85
rf = 5.12%
New required return;
Required return = risk free rate + beta * (Market return - risk free rate)
= 5.12% + 1.85 * (25% - 5.12%)
= 41.90%
Answer:
$1400 U
Explanation:
Total direct materials cost variance = (47,000 actual pounds × $1.20 actual cost per pound) − (50,000 standard pounds × $1.10 per pound) = $1,400 unfavorable
The correct option is: For each unit of the good that is sold, buyers bear <u>one-half of the tax burden and sellers bear one-half of the tax burden.</u>
<u>Explanation</u>:
Incidence of tax is a term referred in economics which deals with division of taxes. Tax incidence refers to division of tax among the buyer and seller for a product. The tax incidence is related to the price elasticity of supply and demand.
When a product is sold, the buyer of the product is charged with one-half of the tax burden and the seller of the product bears the other-half of the tax burden.
The incidence of tax can be observed in two ways:
i) Formal incidence
ii) Effective incidence
