Answer:
the money supply in Macroland will increase from <u>5,000</u> econs to <u>7,000</u> econs
Explanation:
Currently, Macroland's money supply = 2,000 econs held by the public and 3,000 econs held by the banks (= 300 econs x 1/0.1).
In order to determine the increase in the money supply we must multiply the inflow of econs by the money multiplier. The money multiplier = 1 / reserve ratio = 1/0.1 = 10.
Since the government is injecting 200 econs to the economy, the increase in the money supply = 200 econs x 10 = 2,000 econs.
So now, Macroland's money supply will increase from 5,000 to 7,000 econs.
The money multiplier measures the banking system's ability to "create" money. The banking system creates money by first receiving deposits, e.g. you deposit 10 econs in your savings account, and then lending money to another client. The bank will lend 9 econs (-10% required reserve) to John that will purchase a bike. The seller of the bike receives the money form John and deposits the 9 econs in his own bank. Then this second bank will lend 8.10 econs to Sarah. Sarah will use the money to purchase a new computer and a printer from Tom. Tom then deposits the money in his bank, and then his bank lends 7.29 econs to Sally, and the wheel goes on and on.
This money creating process is possible because Macroland uses a fractional banking system, which means that the banks are only required to keep a fraction of total deposits as reserves.
Answer:
franchisee , franchise.
Explanation:
Franchisee is a company or an individual that holds the franchise for the sale of the products .
Franchise is a company whose product are being sold by the franchisee.
So franchising lets a company to to set up a small business quickly because the franchisee is associated with a brand and a franchise reaches a break-even point a lot quicker than an independent business.
Legitimate powers are directly based on structural position, charisma, and interpersonal trust.
<h3>Definition of Power and Authority</h3>
While Power is the use of coercion or force to exercise right or control authority is the willingness of people to obey an individual.
In this context, legitimate power can be seen as an authority.
Learn more about authority and power here:
brainly.com/question/19257731
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The economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs. Socioeconomic model of social responsibility, which places emphasis not only on profits but also on the impact of business decisions on society.
https://quizlet.com/82572828/chapter-2-business-ethics-social-responsibility-flash-cards/
Answer:
The answer is $758,000.
Explanation:
Net working capital is total current asset minus total current liability i.e total current asset - total current liability
Total current assets equals($918,000) $105,000 +$290,000 + $213,000 + $310,000.
Total current liabilities equal($160,000) $95,000 +$65,000
Therefore, net working capital is:
$918,000 - $160,000
= $758,000
