Answer: b. increases, the money multiplier decreases, and the money supply decreases
Explanation:
When the central bank raises the reserve requirement, the reserve ratio increase as banks will now hold more money as reserves. The Money multiplier decreases as Reserve ratio increase therefore when The reserve ratio increases the money multiplier will decrease which will then lead to a decrease in the money supply.
When Banks hold more money because of an increased reserve requirement, Money Multiplier and Money supply will decrease because each bank will have less funds available for loans.
Answer:
The correct answer is D. The house, toolshed, maple tress and apple tree.
Explanation:
Jacob owns all the elements of the property, as it is located within its 5 acres of land in northern California. Both the house, the tool shed, the 10 maples and the apple tree he planted are part of his private property. And everything he builds in that space will belong to him (crops, buildings, etc.).
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Materials handling $27,000
Direct materials $3,000 Direct labor (600 hours) $9,000 Number of material moves 4
Expected activity for the four activity drivers that would be used are: Machine hours 5,000 Material moves 600 Setups 200 Quality inspections 1,000
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 27,000/600= $45 per material move
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 45*4= $180
Answer:
a. 8.24%
Explanation:
The formula to compute the effective annual rate of the loan is shown below:
= (1 + nominal interest rate ÷ periods)^ number of period - 1
= (1 + 8% ÷ 4)^4 - 1
= (1 + 2%)^4 - 1
= 1.02^4 - 1
= 8.24%
As the interest rate is made on a quarterly basis and we know that there are four quarters in a year and we take the same in the computation part
Answer:
Government spending would have to change by <u>$1.6 billion</u>
Explanation:
The marginal propensity to consume (MPC) refers to the proportion of an increase in aggregate income that is spent on consumption of commodities by a consumer.
Since from the question, we have:
MPC = Marginal propensity to consume = 0.75
The MPC can therefore be used to calculate the fiscal multiplier which measures the effect of government spending on real GDP as follows:
Fiscal multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 1 / 0.25 = 4.0
Therefore, we have:
Change in government spending = Fiscal multiplier * Amount of targeted increase real GDP = 4.0 * $400 million = $1.6 billion
Therefore, government spending would have to change by <u>$1.6 billion</u> to generate $400 million increase in real GDP.