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baherus [9]
3 years ago
11

18. Open Market Operations and the Money Multiplier Suppose that the reserve requirement for checking deposits is 10 percent and

that banks do not hold any excess reserves. If the Fed sells $1 million of government bonds, the economy’s reserves increase by $100 million, and the money supply will increase by $9 million. Now suppose the Fed lowers the reserve requirement to 5 percent, but banks choose to hold another 5 percent of deposits as excess reserves. This will the money multiplier, and it will the money supply.

Business
1 answer:
Arlecino [84]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following image.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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shusha [124]
Keynesian economic basically means that the goverment has to step in and try to stimulate economic wealth. This is were macroeconomics comes to play. Laissez fair in Belgium means hands off or lay. This explains why laissez fair is a strategy our previous presidents used to stop the Great Depression. In other words it means the govermeant steps out of helping hand and count on capitalism.
5 0
3 years ago
Select all that apply Given the accounts below, choose all of the ones that affect equity. (Check all answers that apply.) Multi
Nataly [62]

The accounts that affect equity are revenues, common stock, expense, and dividends.

The following information should be relevant for the equity:

  • If there is an increase in revenue so the equity is also increased.
  • If there is an increase in the common stock so the equity is also increased.
  • If the expense is increased so it decreased the equity.
  • If the dividend is paid so the equity is decreased

In this way, the equity account is affected.

Learn more about the equity here: brainly.com/question/3841249

3 0
3 years ago
It's easier to eliminate negative self talk when we are:
Leokris [45]
I think the answer would be alone 
6 0
3 years ago
The worker-misperception explanation of the SRAS curve is used to explain why a. SRAS curves shift to the left b. the SRAS curve
8090 [49]

The SRAS curve slopes upward.

  • We can understand how each firm in an economy reacts to price stickiness using the short-run aggregate supply curve (SRAS). The SRAS curve will have an upward slope when prices are stable. According to the SRAS curve, more output results from higher price levels.
  • The SRAS curve will move to the left as the cost of such inputs rises, signaling that, at each level of output price, greater input costs will discourage production because they will make it more difficult to turn a profit.
  • The SRAS curve moves to the right as productivity increases because more productive businesses can generate more output at all pricing points.

Thus this is the answer.

To learn more about SRAS curve, refer:brainly.com/question/26875448

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8 0
2 years ago
Based on the data below, how would the inventory appear on the balance sheet, assuming that the lower of cost or market is used
Mashcka [7]

Answer:

On the balance sheet, the inventory would appear as:

Inventory $248,000

Explanation:

In the notes to the accounts, the method of determining the cost and the method of valuing the inventory would be disclosed.  It is not disclosed on the balance sheet, but on the notes to the accounts.

It would make the balance sheet appear unorganized to include details that should have been included in the notes.  The presentation of information is very important in order to ensure that those reading the information understand it.  Understanding is not aided by including information that could be displayed elsewhere.

8 0
3 years ago
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