Answer:
The Money supply will decrease by $4,500
Explanation:
What will be the maximum impact on money supply today as a result of your action is that the Money supply will decrease by $4,500.
Since we assumed that you have $10,000 in your account in which you withdraw $500 cash from your account and hide it under your pillow for future use, therefore based this scenario or actions carried by you it means that your bank have fewer or lesser funds available to make loans which means the decrease will tend to affect the money supply.
Hence, you can easily calculate the effect by using the simple money multiplier.
Answer: Option (b) is correct.
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
The preferences of Pam, Pru and Pat are given. Therefore, according to their preferences, the opportunity cost of the trip to Hawaii for Pam and Pat is a cruise and for Pru is a skiing.
Answer:
Promissory estoppel is the legal principle that a promise is enforceable by law
Explanation:
I am assuming here that you use the example where in the US the workers can produce 200 computers of 100 cars and the French workers can produce 80 of each.
Then the opportunity cost of one computer in France is higher than in the United States -which means that it's lower in the United States (twice as low)
So, France would have a comparative advantage in producing wine and US in producing computers.
