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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.

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Compared to a monopoly that does not price​ discriminate, a monopolist who engages in perfect price discrimination will produc
pantera1 [17]

Answer:

An output that maximizes revenue and profits. If a firm can price discriminate, it will sell its product or service at a different price to every single consumer. Perfect price discrimination refers to pricing your product at exactly the highest amount that each individual consumer is willing to pay, i.e. consumer surplus disappears.

7 0
2 years ago
As a result of a thorough physical inventory, Horace Company determined that it had inventory worth $320,000 at December 31, 201
zimovet [89]

Answer:

The correct answer is option b) $367,000

Explanation:

Here for calculating the correct amount of inventory that Horace should report can be calculated through, by adding the inventory worth $320,000 at 31 December, 2015 with consignment given to Herschel worth $47,000, SO

Correct amount of inventory =

                        Amount of inventory on 31 December

                                                     +

                        Consignment given to Herschel

= $320,000 + $47,000

= $367,000

Here we are taking Herschel consignment in to account and that too at the historical purchase cost because Horace company has give the Herschel to sell the goods on his behalf but the transfer of ownership has not taken place here , the right to ownership here remains with the Horace and the amount at which they should be recorded is at purchase cost not selling cost.

We will also not include goods worth $ 22,000 in to the calculation because the Horace company has not received the goods physically yet, we will include those goods in to inventory on January 3 not before that.

3 0
3 years ago
This type of data display are excellent ways to organize and categorize data and can be useful to examine the detail of a specif
galben [10]

Answer:

C : Tables

Explanation:

Tables represent the simplest way to organize data to display details of specific contents. In tables data is represented in rows and columns. Rows represent each data or data category. Columns are used for displaying features of each data, like sex, age, income level, etc.

8 0
3 years ago
Refer to the accompanying graph. If the market price for the product falls, then which of the curves would shift?A. MCB. ATCC. A
ella [17]

If the market price for a product falls, the curve that would shift would be the D. Curve D.

<h3>What curve shifts with market price ?</h3>

In the given graph, the curve that would shift as a result of a shift in the market price would be the demand curve or D. This is because this demand curve is a horizontal curve which makes it perfectly elastic.

A perfectly elastic curve will change demand when there is a change in market price as more people will be interested in the good or service and try to get more or it.

Find out more on shifts in curves at brainly.com/question/29730751

#SPJ1

6 0
1 year ago
why does brainly need to ad lock answers they get enough money through all the banners when you go watch an ad to get an answer
Travka [436]

Answer:

all they want to get is money and attention.

Explanation:

All buisnesses do that stuff

3 0
3 years ago
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