Answer:
Option (D) is correct.
Explanation:
Given that,
Amount of securities purchased = $100,000,000
Reserve requirement ratio = 20 percent
Money multiplier:
= 1 ÷ Reserve requirement ratio
= 1 ÷ 0.20
= 5
Increase in money supply:
= Money multiplier × Amount of securities purchased
= 5 × $100,000,000
= $500 million
Therefore, the total impact on the money supply will be a $500 million increase in the money supply.
Answer:
Explained below:
Explanation:
The equity method of accounting is the method of producing investments in other companies. If a company invests in another corporation and holds 20 to 50 % share of the particular corporation and hence has a notable impact on the latter's administration then the investor (company) should apply the equity method of accounting to this investment and reports such investments on its balance sheet as an asset..
Answer:
Explanation:
When making a decision, irrelevant items are included in the analysis in both alternatives when using: the total cost approach only.
Answer:
The multiplier is useful in determining the change in GDP resulting from a change in spending
Explanation:
A change in autonomous spending will lead to a much larger final change in real GDP because of the multiplier effect. That spending will have a much larger final impact on real GDP.
7%, hope this helps!
•••
Caramelatte
