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jek_recluse [69]
3 years ago
14

Suppose the reserve requirement is 20 percent and banks hold no excess reserves. A $1 billion purchase of government securities

by the Fed will:
Business
1 answer:
Alex777 [14]3 years ago
5 0

Answer:

increase the money supply by $5 billion

Explanation:

When the Fed carries on an expansionary monetary policy it lowers interest rates and purchases government securities in order to increase the money supply in an attempt to boost economic growth.

The increase in the money supply is determined by the total amount of the open market operations carried out by the Fed ($1 billion) and the money multiplier (= 1/reserve ratio = 1/20% = 5).

Total increase in money supply = $1 billion x 5 = $5 billion

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Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a s
Nostrana [21]

Answer:

Check the explanation

Explanation:

                                                                                May                  June

Budgeted sales                                                    10800               14400

                                                                                (600*18)      (800*18)

Less: cost of good sold                                         5970                7960

                                                                             (9.95*600)    (9.95*800)

Gross margin                                                          4830                6440

Less: Operating expenses  

Selling expenses (6%*Sales)                                  648                  864

Fixed administrative expenses                              1200                 1200

Total operating expenses                                      1848                 2064

Budgeted Net Operating Income                          2982                 4376

 

 

Unit product cost  

Material                                                           $4  

Direct labor (9*.3)                                           2.7  

Variable manuafcturing overhead                1.25  

Fixed overhead                                               2  

Unit product cost                                          $9.95  

4 0
3 years ago
Amy's school records describe her as having monochrome blindness. what can we assume about amy's perceptual abilities?
inessss [21]

We can assume that Amy’s perceptual abilities is that she may not be able to see color because she is considered or described to a monochromat base on the findings that is seen from her or base from the school records that has been provided.

5 0
3 years ago
DC Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a s
labwork [276]

Answer:

Correct option is B.

$278,000

Explanation:

Common Fixed Expenses = Office Administrative Assistant + Office Administrative Assistant + President's Salary

Common Fixed Expenses = $61,750 + $46,750 + $169,500

Common Fixed Expenses = $278,000

3 0
3 years ago
Read 2 more answers
One way to obtain the economically efficient amount of college education is for governments to subsidize college education. What
Karolina [17]

Answer:

The remaining part of the question is given below:

(Note that the subsidy can be granted to the education institutions or to the students directly or indirectly; for example, through low- interest student loans.)

a. P2-P0

b. P2-P1  

c. P0-P1

d. P1

<u>Correct Answer:</u>

b. P2-P1

Explanation:

A pigouvian subsidy is a subsidy that is used to encourage behaviour that have positive effects on others who are not involved or society at large. <em>Behaviors or actions that are a benefit to others who are not involved in the transaction are called positive externalities.</em>

7 0
3 years ago
Which of the following is true of semiglobalization?
ehidna [41]

Answer:

The answer is: B) It is a type of globalization that lies between total isolation and total globalization.

Explanation:

Semi-globalization is a term that tries to explain how the world is becoming one single market (globalization) but at the same time barriers still exist and are very significant in different markets.

A few years ago this term was used to describe situations that arouse in emerging markets, where governments were trying to protect internal markets while trying to export their goods to developed countries.

Now it has become more common for developed countries to try to set entry barriers for foreign products but at the same time expect other nations to receive their products freely. E.g. Trump's trade war with China or the Brexit.

3 0
3 years ago
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