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Levart [38]
3 years ago
5

Suppose the money supply (as measured by checkable deposits) is currently $700 billion. The required reserve ratio is 25%. Banks

hold $175 billion in reserves, so there are no excess reserves.
The Fed wants to increase money supply by $44 billion, to $744 billion. Assume that you can use the simple money multiplier
a) If the Fed wants to increase the money supply through open market operations, it should_ $_ billion worth of U.S. government bonds.
b) If the Fed wants to increase the money supply by adjusting the required reserve ratio, it should_required reserve ratio.
Business
1 answer:
coldgirl [10]3 years ago
5 0

Answer:

a) Buy bonds worth 44$ billion

b) Decrease

Explanation:

a) If the Fed wants to increase the money supply through open market operations, it should Buy bonds worth 44$ billion of U.S. government bonds.

b) If the Fed wants to increase the money supply by adjusting the required reserve ratio, it should Decrease required reserve ratio.

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3 0
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8 0
3 years ago
When the cross price elasticity between good X and other related goods is positive and very low firm X can be assumed to have?
geniusboy [140]

Answer:

c. a significant amount of market power 

Explanation:

Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.

If the cross price elascitiy is postive, the goods are subsituites.

If the cross price elasticity is negative, the goods are complementary goods.

If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes

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I hope my answer helps you.

3 0
3 years ago
During April, the production department of a process operations system completed and transferred to finished goods 31,000 units
Shalnov [3]

Answer:

E) $3.00.

Explanation:

The computation of direct materials cost per equivalent unit is shown below:-

Equiavent unit with respect to material = $31,000 + $88,000 + $30,000

= 149000 units

Total direct material cost = $109,600 + $336,800

= $446,400

Direct materials cost per equivalent unit = Total direct material cost ÷ Equiavent unit with respect to material

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= $3 per unit

So, we have applied the above formula.

3 0
3 years ago
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