Assume that the reserve requirement is 20 percent. If the Federal Reserve buys $5,000 worth of bonds, the largest possible incre
ase in the money supply is. If someone deposits in a bank $5,000 that she had been hiding in her cookie jar, the largest possible increase in the money supply is. True or False: All other things equal, the money supply will expand more if someone deposits in a bank $5,000 that she had been hiding in her cookie jar than if the Federal Reserve buys $5,000 worth of bonds. True or False?
1 answer:
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Answer:
present worth = $7380
Explanation:
given data
initial cash flow = $23,000
geometric gradient = 2%
interest rate i = 10% per year
time period = 5 year
solution
we get here present worth cost that is
present worth = initial cash flow × ......................1
put here value and we get
present worth = $23,000 ×
present worth = $23,000 × 0.32087
present worth = $7380