Answer: yes
Explanation:
Converting each to pounds it equals 13.3 pounds
That would be considered True in most environments
Answer:
(a) 0.7
(b) 3.33
(c) -$210
(d) -$147
(e) -$1 trillion
Explanation:
(a) Marginal propensity to consume (MPC) = 0.7
(b) Multiplier of this economy:
= 3.33
(c) Decrease government purchases by $300 billion,
Initial change in consumption = Change in government purchases × MPC
= $300 × 0.7
= -$210 billion
(d) This decreases income yet again, causing a second change in consumption equal to:
= Initial change in consumption × MPC
= -$210 × 0.7
= -$147 billion
(e) The total change in demand resulting from the initial change in government spending is:
= Change in government purchases × Multiplier
= $300 × 3.33
= -$1 trillion
Answer:
Objectives of Business – Profitability, Growth, Stability, Efficiency and Survival. Business means busy in some activities. Business means conducting activities such as – sale, purchase and manufacturing etc for profit and growth.
Explanation:
Answer:
$300 million
Explanation:
Data provided in the question:
Required reserves by commercial bank = $60 million
Reserve ratio of the commercial bank = 20% = 0.20
Now,
Reserve ratio is given as:
Reserve ratio = [ Reserves ] ÷ [ Checkable deposits ]
or
0.20 = $60 million ÷ [ Checkable deposits ]
or
Checkable deposits = $60 million ÷ 0.20
or
Checkable deposits = $300 million