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shepuryov [24]
3 years ago
10

Given no cash leakage and zero excess reserves held by banks, if reserves increase by $8 billion and the required reserve ratio

is 9 percent, what is the resulting change in the money supply?
Business
1 answer:
Dimas [21]3 years ago
7 0

Answer:

The answer is $88,880,000

Explanation:

Multiplier effect = 1 / required reserve ratio

Required reserve ratio = 9 percent

Multiplier effect is therefore;

1/0.09

=11.11

Change is money supply is increase in reserve multiplied by multiplier effect

Increment in reserve = $8milion

11.11 x 8million

=$88,880,000

So, resulting change in the money supply is $88,880,000

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Suppose there are five suppliers of ice cream in the town of Summerville. When the price of ice cream is $2 per scoop, Firm A is
victus00 [196]

Answer:

the market quantity supplied is less than 250 scoops when the price is $2 per scoop

Explanation:

When price is $2, the total quantity supplied = 20 + 50 + 35 + 100 + 40 = 245

At the price $2, the total quantity supplied is less than 245

3 0
3 years ago
Item 35Item 35 You expect to receive $4,100 upon your graduation and will invest your windfall at an interest rate of 0.63 perce
Arada [10]

Answer:

It will take 11.7 years to reach the objective

Explanation:

Giving the following information:

PV= $4,100

FV= $5,500

i= 0.0063

n= ?

To calculate the time required to reach the future value, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)

n= ln(5,500/4,100) / ln(1.0063)

n= 46.78

in years= 46.78/4= 11.70

It will take 11.7 years to reach the objective

4 0
3 years ago
(a) The weather forecast for the weekend is a 35% chance of rain for Saturday and a 30% chance of rain for Sunday. If we assume
Alona [7]

Answer:

Explanation:

a)

It is known that,

P(Sat) = 0.35

P(Sun) = 0.30

P(no rain on Sat) = 1 - 0.35

P(no rain on Sun) = 1 - 0.30

So P(rains on the weekend) = 1 - P(no rain on Sat) P(no rain on Sun) =

= 1 - (1-0.35)(1-0.30) = 0.545

b)

P(Sat Sun) = P(rains on Sat) P(rains on Sun) + P(rains on Sat) P(no rains on Sun)  = 0.35*0.30 + 0.35*(1-0.30) = 0.35

5 0
4 years ago
What is the main advantage of investing in stocks?
Dima020 [189]

The correct option is C. Stocks offer a potentially large return on investment which is an advantage of investing in stocks.

<h3></h3><h3>What is the need to invest in stocks?</h3>

Stocks can be the most valuable part of your investment portfolio. Owning stocks in different firms can help you build your savings, protect your money from inflation and taxes, and maximize the income from your investments.

Thus, investing in stocks helps you to build your savings, protect your money from inflation and taxes, and maximize the income from your investments. So, stocks offer a potentially large return on investment.

Learn more about Investing in stocks here:

brainly.com/question/365124

#SPJ1

7 0
2 years ago
McFarlane, Inc. reports the following information:
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