If the required reserve ratio is 2.50 percent, the monetary multiplier is 40.
The money multiplier gives us the ratio of deposits to reserves (i.e. 1/R). That means, if the reserve ratio is 2.50% (i.e. 0.025), the money multiplier is 40 (i.e. 1/0.025). Thus, an initial deposit of USD 1,000 will end up creating a total of USD 40,000 in new money.
If the monetary multiplier is 5, the required reserve ratio is 20%.
Playing with the original multiplier formula, we can derive that R=1/m (m is money multiplier). If the money multiplier is 5, then the reserve ratio is 20% (i.e. 1/5 or 0.20).
Answer:
1. True
2. False
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
An example of perfect competition is the market for farm produce.
I hope my answer helps you
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Consultancy involves asking important question and guidelines form an expert.
It is done in achieving success in a particular project or Job.
The first step will be to run a survey on the adoption of the new technology.
Therefore, The first advised will be to carry our a survey that will show peoples opinion.
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Answer:
a. $28
b. $19
c. 800 watches
Explanation:
The equation is
p = D(q) = 28 - 2.25
The equation of the demand would be
P = 28 - 2.25q
a. The price would be
= $28 - 2.25 × 0
= $28 - 0
= $28
b. The price would be
= $28 - 2.25 × 4
= $28 - 9
= $19
The quantity demanded is come in hundreds so we take only 4
c. The quantity woul dbe
$10 = $28 - 2.25q
$10 - $28 = -$2.25q
-$18 = -$2.25q
So q would be
= 800 watches
