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leonid [27]
3 years ago
14

The "great american desert" was a misleading term that referred to which geographical location

History
1 answer:
Leto [7]3 years ago
8 0
The great plains. Hope this helps!
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List three ways congress has tried to regulate the activities of lobbyist
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4.000 in roman numbers
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2 years ago
Thanks play an important role in determining changes in the money supply. Assume that a bank receives a cash deposit of 9000 fro
mihalych1998 [28]

Answer:

the money multiplier = 1/ reserve ratio in this case, the reserve ratio is 10% (required) + 10% (voluntary) = 20%, so the money multiplier = 1/20% = 5 %

What is the immediate impact of this transaction on the money supply? None, since the money supply doesn't change. When a customer deposits money in a bank, the money does not increase, only its composition changes. The maximum amount by which this bank will increase its loans from the transaction in part (a) • the bank will be able to loan = total deposit x (1 - reserve ratio) = $9,000

x (1 - 20%) = $7,200

The maximum increase in the money supply that will be generated from the transaction in part

• since the banks started to "create" money by lending the money, the money supply will increase by total deposit x ( money multiplier - 1) = $9,000 x 4 = $36,000 Assume that the government increases spending by $9,000, which is financed by a sale of bonds to the central bank. Indicate what will happen to the money supply.

• The money supply will increase.

Explain what will happen to the money demand. • The money demand will also increase because aggregate demand and income will increase. Aggregate demand will increase by $9,000 x government multiplier. The government multiplier = 1/ MPS.

7 0
3 years ago
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