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:
b. 20 sandwiches
c. 25 sandwiches
Explanation:
1. I added this diagram of the flow chart as an attachment
2.
Hourly capacity of sandwich making process:
Time it makes to 1 sandwich: 2 + 12 + 1 = 15
The time alice spends when making one sandwich = 2 + 1 = 3
oven uses 12 minutes to process one sandwich, so in 12 minutes, alice can can make 12/3 sandwiches = 4
The Oven can take 5 subs at a time,
So in one hour, the making process
= 60/3 = 20 sandwiches
3.
To calculate Hourly capacity with additional employee:
Alice takes 2 minutes
Additional employees takes 1 minute
Oven uses 12 minutes to make one sandwich
It's only after every 2 minutes Alice can put one sandwich. The oven can take only 5 sandwiches.
So in an hour:
Since oven can take 5
Sandwiches at a time, therefore one sandwich takes,
12 / 5 = 2.4 minutes.
In 1 hour number we have number of processed sandwich as
60 / 2.4 = 25
At hourly capacity with additional employees we have 25 sandwiches
