1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sever21 [200]
3 years ago
7

After a sluggish quarter, the Federal Reserve Bank decides to increase the money supply in the economy. When the money-creation

process is complete, the Fed wants there to be $20 billion worth of new funds in the money supply. If the required reserve ratio is 5%, what is the simple money multiplier, and by how much should the Fed initially increase the money supply? Assume that all currency is deposited in banks and that banks hold no excess reserves.
Business
1 answer:
Maslowich3 years ago
5 0

Answer:

20; $1 billion

Explanation:

Given that,

New funds = $20 billion

Required reserve ratio = 5%

Money multiplier:

= 1/Required reserve ratio

= 1/0.05

= 20

Initial money increase by:

= Funds wants to be in the money supply × Required reserve ratio

= $20 billion × 5%

= $1 billion

Therefore, the Fed should initially increase $1 billion in the money supply.

You might be interested in
You want to run a difference-in-difference experiment with a price increase for the bacon cheeseburger item on your menu. If you
Tasya [4]

Answer:A

Explanation:

A soft drink will definitely be a poor comparison menu because it initially started the experiment with a bacon cheeseburger. From the experiment, it doesn't correlate with the representativeness.

5 0
3 years ago
Read 2 more answers
When profit-maximizing firms in competitive markets are earning profits, market demand must exceed market supply at the market e
ella [17]
The correct answer is " new firms will enter the market"
4 0
3 years ago
On March 1st, Mr. Smithe signed up for a fitness program at Fit Co. and paid $960 for the entire program upfront. The program in
vichka [17]

Answer:

Revenue - March = $160

Explanation:

The accrual principle in accounting states that the revenues for a period should match the expenses for that particular period and any revenue or expense should be recorded in the period to which it relates to. This means that the upfront fee received by Fit Co. is a liability and should not be recorded as a revenue until it is earned. So, by providing two sessions in the month of March, Fit Co. has earned revenue for 2 sessions out of the twelve. Thus, at the end of March, Fit Co. should record a revenue of,

Revenue - march = 960 * 2/12 = $160

8 0
2 years ago
Briefly describe an experiment that would test the premack differential probability principle
amm1812
An experiment that could test the Premack differential probability rule is as per the following; the kids are given two reaction choices, one for playing pinball machine and another for eating confection and these practices are evaluated to figured out which is more plausible for every kid. A portion of the youngsters who discovered to favor one movement. In the second period of the trial, the testing of the youngsters was directed with one oF the two systems. In the primary strategy, eating was a fortifying reaction while playing pinball was the instrumental reaction implying that the youngsters played pinball keeping in mind the end goal to eat the confection.
6 0
3 years ago
The decision making process is best when?
valentina_108 [34]

Answer:

when u have 2 decide between 1 and another or when u r taking a test then u have make a decision

Explanation:

3 0
3 years ago
Other questions:
  • The 2013 annual report of Oracle Corporation included the following information relating to their allowance for doubtful account
    15·1 answer
  • Connor Corp. has large amount of data that they are trying to analyze from the last 15 years. They have an arithmetic sales grow
    10·1 answer
  • Which is true regarding elasticity of supply ?
    7·1 answer
  • What is meant by cot plus pricing
    8·2 answers
  • Interorganizational systems are examples of _____.
    5·1 answer
  • Matt Winne​, Inc. issued $ 1 comma 000 comma 000 of 9​%, nine​-year bonds payable on January​ 1, 2018. The market interest rate
    7·1 answer
  • Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $258 two years a
    6·1 answer
  • Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The
    15·1 answer
  • Use your knowledge of what drives employee performance to complete the sentence.
    9·1 answer
  • ellis university, a private, nonprofit university receives a letter pledging to donate $1,000,000 to the university. the pledge
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!