Answer and Explanation:
The Fed would use Expansionary monetary policy
Number of boxes price per box according to price schedule is 3.18 orders.
Given
Annual demand D = 15875 boxes per year
Carrying cost H = 0.79 cents
Ordering cost S = $97
Optimal order quantity Q
Q=
Q = 1974 units
But at Q = 1974 units we are getting less discount. So, we calculate total cost at Q = 19, Q = 2000, Q = 5000, Q = 10000
Total cost = Purchase cost + Annual Holding cost + Annual ordering cost = PD + (Q/2)H + (D/Q)S
The total cost is less at optimal order quantity Q = 5000
a) Optimal order quantity = 5000 boxes
b) Number of orders = (D/Q) = 15875/5000 = 3.18
Number of orders = 3.18 orders
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Answer:
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If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be: a. 4.00.
<h3>Money multiplier</h3>
Using this formula
Money multiplier=1/required reserve ratio
Where:
Required reserve ratio=25% or 0.25
Let plug in the formula
Money multiplier=1/.25
Money multiplier= 4.00
Inconclusion if the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be: a. 4.00.
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Answer:
The price of a U.S. postage stamp has increased approximately <u>63%</u> in terms of Indian rupees and <u>10%</u> in terms of Chinese yuan.
Explanation:
the exchange rate between the US dollar and the Indian rupee:
April 2011 = 45.54 Indian rupees per dollar x $0.41 = 18.67 Indian rupees
April 2016 = 66.16 Indian rupees per dollar x $0.46 = 30.43 Indian rupees
change in Indian rupees = (30.43 - 18.67) / 18.67 = 63%
the exchange rate between the US dollar and the Chinese yuan:
April 2011 = 6.61 Chinese yuan per dollar x $0.41 = 2.71 Chinese yuan
April 2016 = 6.48 Chinese yuan per dollar x $0.46 = 2.98 Chinese yuan
change in Chinese yuan = (2.98 - 2.71) / 2.71 = 10%
