Answer:
a) reserves fall by $1,000, checkable deposits fall by $10,000, and the monetary base remains unchanged
Explanation:
The bank reserves will decrease by the same amount that the client withdrew from the bank, in this case $1,000.
Since the required reserve ratio for checkable deposits is 10%, then the checkable deposits will decrease by 10 times the amount withdrawn from the bank ($1,000 x 10 = $10,000).
The monetary base remains unchanged since the money is still out there in the economy, it only changed from being in the bank to being in the client's pocket.
The owner is usually the one who developed the menu.
A business excludes money paid as salaries or wages to employees from operating surplus.
Answer:
C) 1.6
Explanation:
The real exchange rate is calculated by multiplying the nominal exchange rate by the price level of the countries:
nominal exchange rate = 2 US dollars per British pound = $2/£
real exchange rate = $2/£ x (US price level / British price level) = $2/£ x 0.8 = $1.6/£
Answer:
$136
Explanation:
Date Transaction Units Cost Total
3 Purchase 5 $20 $100
10 Sale 3
17 Purchase 10 $24 $240
20 Sale 6
23 Sale 3
30 Purchase 10 $30 $300
using the first in, first out method, the COGS is calculated based on the oldest price of the units in merchandise inventory:
6 units were sold on May 20th, 2 of them costed $20 (May 3rd purchase) per unit = $40, while 4 of them costed $24 (May 17th purchase) = $96. Total COGS = $40 + $96 = $136.
