Answer:
The largest amount by which the money supply can increase is $1,875
Explanation:
According to the given data, we have the following:
Checking/Demand Deposit = $150 (which is assumed to be the part of new money supply)
Required reserve ratio = 8% = 0.08
Therefore, first we need to calculate the money supplier as follows:
Money multiplier 1/rr
Money multiplier = 1/0.08
Money multiplier = 12.5
Hence for $150 deposited the money supply will increase by $(150×12.5) =$1,875
The largest amount by which the money supply can increase is $1,875
Answer: 6.375%
Explanation:
The Lancaster State Bank is thinking about purchasing a corporate bond that has a yield of 8.5%. This bank has a marginal tax rate of 25%.
The after-tax yield on this bond would be 6.375%
Answer: <u>"b. Price is greater than long-run average cost."</u> is NOT characteristic of long-run equilibrium for a perfectly competitive firm.
Explanation: In the long term the company will produce the output level at which long-run average cost is at its minimum.
Where the price is equal to the long-run marginal cost and the long-run average cost.
Answer: Private good
Explanation:
According to the given question, Pennsylvania Turnpike is basically classified as private good on the basis of given situation and private good is one of the type of good that provide the various types of benefits according to the customer requirement.
The various types of private good is basically produced by the private owned companies for the purpose of increase the satisfaction and the utility. The clothes, food, sanitation and knowledge are the private good.
Therefore, Private good is the correct answer.
17.5 years to wait to be able to withdraw money without penalty.
