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Masteriza [31]
2 years ago
12

In a simplified banking system in which all banks are subject to a 20 percent required reserve ratio, a $1,000 open market purch

ase by the Fed would cause the money supply to ________
Business
1 answer:
UNO [17]2 years ago
5 0

Answer:

Increase by $5000

Explanation:

The United States Central Bank or the Federal Reserve (Fed) is responsible for controlling money supply in the United States as well as the activities of the commercial banks. This control can be carried out through a particular activity known as the Open Market Operations (OPO). This activity could be in form of buying or selling securities in the market.

According to the question, the 20% required reserve ratio means the banks are to maintain 20% of their total deposits. This means that a market purchase by the Fed of $1000 will increase the money supply by 5 times the amount bought by the Fed (20% is 1/5 of 100%).

The increase is calculated as $1,000 x 5 = $5,000

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A country has constant opportunity cost of production. If they devote all of their resources to the production of blankets they
Zigmanuir [339]

Answer: 2.75 blankets.

Explanation:

The opportunity cost is the value of a good that is sacrificed by choosing some other alternative. So, there are certain costs associated with the consumption of some goods.

In our case,

Opportunity cost of producing 1 shirt = \frac{810}{294}

                                                              = 2.75 blankets

Opportunity cost of producing 1 shirt is 2.75 blankets which means that 2.75 blankets have to be foregone to produce 1 shirt.

7 0
3 years ago
Barb is trying to take control of her time by using an online time tracking system that tracks her time spent on tasks and proje
solniwko [45]

Answer:

Habit Loop

Explanation:

Habit Loop -

It is a type of loop , which runs in the brain of the human being , and functions to govern the habit , is referred to as habit loop .

The habit loop has three components , i.e. , reward , routine , and cue  .

The proper knowledge of these components enables the person to have command of their habits and can easily remove the bad habits and inculcate the good ones .

Hence , from the given scenario of the question,

The correct term is habit loop .

5 0
3 years ago
The demand for textbooks is Q = 200 – P + 25 U – 50 P beer. Assume that the unemployment rate U is 8 and the price of beer P bee
Readme [11.4K]

Answer: -0.5

Explanation:

Based on the information given, the price elasticity of demand will be calculated as follows:

= dQ/dP × P/Q

where,

dQ/dP = -1

P = 100

Q = 200 – P + 25 U – 50 P beer

Q = 200 - 100 + 25(8) - 50(2)

Q = 200 - 100 + 200 - 100

Q = 200

Therefore, dQ/dP × P/Q

= -1 × (100/200)

= -1 × 1/2

= -1 × 0.5

= -0.5

The price elasticity of demand is -0.5.

4 0
3 years ago
Which of the following is not the process of financial management? A Evaluating financial status B Setting goals C Record monthl
Phantasy [73]

Answer:

C) Record monthly expenses

Explanation:

4 0
2 years ago
Gasoline and bicycles are substitutes in consumption. Suppose we increase the federal gasoline tax to $1 per gallon.
marin [14]

If the federal gasoline tax increases to $1 per gallon, the gasoline price rises, demand for bicycles shifts rightward.

Option B

<u>Explanation:</u>

If the price of gasoline increases, then probably there will be a decrease in the consumption of the same as a result of which the demand for the substitute product, bicycle increases.

Demand curve a graphical representation of changes in the product or service demanded along with the changes in the cost or price of the service or product. Increase in the demand for a product, is generally represented by the rightward shift in the demand curve.

8 0
2 years ago
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