Answer:
The increase in the money supply will be "833333.33".
Explanation:
- The real reserve ratio of either a lender seems to be the proportion of overall reserves another bank currently occupies onto another.
- It consists of the proportion they become required to secure forward with, referred to that as the reserve requirement expected, including whatever extra those who happen to retain onto this.
According to the question,
The multiplier will be:
⇒ 
⇒ 
⇒ 
So the increase will be:
⇒ 
⇒ 
Answer:
C.
Explanation:
National income accounting records the value of national income that results from production expenditure.
Producers earn income from buyers who spend money on goods and services.
The amount of expenditure by buyers equals the amount of income for sellers equals the value of production.
Is often defined to be the income earned by a nation´s factors of production, the measure the aggregate economic activity.
Answer:
The company’s cost of equity is 11.51%.
Explanation:
Please find the below for detailed explanations and calculations:
The company's cost of equity need to be found is the discounted rate that will bring net present value of its projected future dividend to its current stock price.
Denote cost of equity need to be found is x.
We apply the formula to calculated the present value of growing perpetuity to find x as shown below:
[ 3 x ( 1+0.062) ] / ( x - 0.062) = 60 <=> 3.186 / ( x - 0.062) = 60 <=> x = 11.51%.
Thus, the company's cost of equity is 11.51%.
The lands' end will be considered as the consumer in the given choices because a consumer is someone who purchases or buy materials for their benefits, this is seen above as they purchase merchandise and materials from around the world.
Low interest rates and loose credit standards
