<span>A: to set interest rates</span>
Answer:
The change in checking deposit is equal to $22,727.27.
Explanation:
An amount of $2,500 is deposited in a checking account.
The required reserve ratio is 0.11 or 11%.
A part of this deposit will go to the required reserve and the rest will be added in the checking deposit of the bank.
The change in the checking deposits will be
= 
amount deposited
= 
= $22,727.27
Answer:
c. generates income
Explanation:
International trade for a country refers to exchange of goods and services beyond geographical boundaries. In short international trade refers to the business due to import and export of goods.
For example, one nation might specialize in the production of cocoa while another nation is rich in oil wells or oil reserves. The two nations can trade such resources and eliminate scarcity or abundance.
International trade leads to increased competition in the domestic market since now the producers are compelled to adhere to meet international quality standards for their products.
So, International trade generally c. generates income.
Answer:
interest rate = 9.01%
Explanation:
given data
real risk-free rate = 2%
maturity risk premium = zero
year 1 Treasury bond yield r1 = 7%
year 2 Treasury bond yield r2 = 8%
solution
we get here year 1 interest rate expected for year 2 is that is express as
interest rate = 
interest rate = 
interest rate = 1.090093 - 1
interest rate = 9.01%
Answer:
All options except A
Explanation:
All the options except productivity (option A) will shift the production possibility curve (PPC) inward.
The factors that shift the PPC inward are; decline in labor demand (increase in unemployment), decrease in capital and technology backwardness.
Unemployment increases during economic recession and increases during economic boom. Recession occurs when there is a decline in aggregate demand; and a decrease in aggregate demand forces businesses to cut jobs, which shifts the production possibility curve inward.
Increase in the price of raw materials elevates the cost of production and the ability of the producer to produce more. Thereby reducing output, hence an inward shift of the PPC.
Mis-allocation of resources causes the business to produce less than its optimum capacity, hence a reduction in output and an eventual inward shift of the PPC.
A natural disaster leads to economic crunch and a decline in aggregate demand, hence an inward shift of the PPC
