Answer:
C. Required reserves decrease by $20.
D. Outstanding liabilities decrease by $200.
A. Required reserves increase by $65.00.
D. Outstanding liabilities increase by $650.
Explanation:
<u>PART I:</u><u> The withdrawal from the checking accounts:</u>
makes the required reserves to decrease as there is less cash deposists.
Also, the bank no longer has the obligation to give this 200 dollars to Shantee thus, otstanding liabilities decrease by 200 as well:
checking deposits 200 debit
cash 200 credit
<u>PART II:</u><u> Deposit in a checking account</u>
This is the opposite. The bank reserve must increase by 10% of the deposit
650 x 10% = 65
And the outstanding liaiblities increase by the full amount as later the bank will give back 650 dollars to Dalon in the future.
The real rate of return is 3.15%.
What is real rate of return?
The annual percentage of financial gain on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of the a given sum of money over time. The investor can calculate how much more of a nominal return seems to be real return by adjusting this same nominal return to account for inflation. Investors must account for the effects of additional factors, including such taxes and investing fees, in addition to adjusting for inflation, in order to calculate real returns on their investments or to make investment decisions. Subtracting this same nominal interest rate from the inflation rate yields the real rate of return.
1+real rate = (1+rate of return) / (1+inflation)
1 + real rate = (1+0.0645) / (1+0.032)
1 + Real Rate = 1.0315
Real Rate = 0.0315 = 3.15%
To learn more about real rate of return
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Answer:
1) You get what you get and don't throw a fit?
2)Be patient???
I hope this helps TwT
Answer: The Ricardian equivalence theorem states that
: <u>"A. an increase in the government budget deficit has no effect on aggregate demand."</u>
Explanation: Ricardian Equivalence establishes that when the government increases the expenses financed with debt to try to stimulate the demand, this increase of the expenses does not produce any change in the demand.
This happens because the increases in the public deficit will be higher taxes in the future. Therefore, taxpayers reduce their consumption and increase their savings in order to offset the cost that will be the future tax increase.
