Answer:
1)
B. more reserves, thus increasing the money multiplier and increasing the money supply.
In a fractional-reserve banking system, banks create money when they make loans. The more money they have available to make loans, the more money they create.
If the Fed reduces the reserve-requirements, banks will have more reserves available to loan out, increasing the money multiplier, and thus, the money supply.
2)
A. rarely changes the reserve requirement and does not use the reserve requirement as a major monetary policy tool.
The Fed rarely uses this monetary policy tool because it is the most powerful one. Changing the reserve requirements effectively reduce or increase the money supply like no other monetary policy tool, therefore, the effects can be dramatic, and its use is a sign that all other tools have been exhausted (open-market operations, and discount window mainly).
Explanation:
Answer:
Option (b) is correct.
Explanation:
Before 1966, Catholics were restricted from consuming meat on Fridays and they ate fish on Fridays. But after 1966, there were no such restrictions are there and they are free to eat meat on Fridays, now Catholics also consume meat on Fridays.
This will result in an increase in the demand for meat and demand for fish decreases. So, this will shift the demand curve of fish leftwards and demand curve of meat rightwards.
<u>Answer:</u>
<em>(C) Gypsy will probably use a </em><u><em>pulsing</em></u><em> advertising schedule.
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<u>Explanation:</u>
A pulsing schedule occurs when a gauge of advertising is expanded during specific periods—bodes well because of the regularity of Gypsy's the same old thing. She is continuously open and would not have any desire to quit publicizing, largely, yet might want to coordinate her promoting consumptions to the business design she watches.
A pulsing schedule joins the fighting and ceaseless booking by utilizing a low publicizing level lasting through the year and substantial promoting during pinnacle selling periods. Item classes that are sold all year; however, experience a flood in deals at irregular periods are great contenders for pulsing.
Answer:
The gross margin is $24,200
Explanation:
The computation of the gross margin is shown below:
As we know that
Gross margin is
= Sales - cost of goods sold
= $57,000 - $32,800
= $24,200
We simply deduct the cost of goods sold from the sales so that the gross margin could come
hence, the gross margin is $24,200
We simply applied the above formula
