All categories

3 years ago

The money supply decreases if:

Business

1 answer:

patriot [66]3 years ago

5 0

Answer:

d. Households decide to hold relatively more currency and relatively fewer deposits and banks decide to hold relatively more excess reserves and make fewer loans

Explanation:

The money supply would decrease, if households decide to hold relatively more currency and relatively fewer deposits and banks decide to hold relatively more excess reserves and make fewer loans.

There would be fewer money in a country, when individuals choose to keep their cash rather than going to deposit it in the banks and perhaps engage more in cashless transactions.

Also, when banks refuses to dispense cash into the public domain and decides to cut down on loan issuance, it result in a decrease in money supply.

You might be interested in

The enormous variety of goods and services that we consume each day can be attributed mainly to

stepladder [879]

To me at least, the context is unclear, though "Trade" seems to be a reasonable answer as we get a lot of goods from trade with foreign countries and get labor and other such services from other countries.

6 0

3 years ago

Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the

soldier1979 [14.2K]

B

reason for my answer

3 0

3 years ago

Companies can and often do use different costing methods for financial reporting and tax reporting. An exception to this is the:

nignag [31]

Answer:

LIFO conformity rule.

Explanation:

LIFO refers to the Last in first out method. In this inventory system, the firm sells last units at first stage and then sells according to that

According to the given situation, the LIFO conformity rule requires that the taxpayer follow the same inventory cost flow as used for tax reporting purposes in the financial statement.

Therefore the correct answer is LIFO conformity rule.

7 0

3 years ago

Calculate total GDP for this economy given the following components of supply. Round your answer to the nearest tenth and enter

Sav [38]

Answer:

The GDP Rounded to the answer to the nearest ten = $21 trillion

Explanation:

What Is GDP?

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.

Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.

Using the The Expenditure Method - Aggregate Demand (AD) the formula for GDP is: 

GDP = C + I + G + (Ex - Im),

where “C” equals spending by consumers,

“I” equals investment by businesses,

“G” equals government spending and

“(Ex - Im)” equals net exports, that is, the value of exports minus imports.

GDP =

C = 3.8 + 2.7 + 12.2 = $18.7 trillion

I = 2.1 + 0

GDP = 18.7 + 2.1 = $20.8 trillion 

GDP = $20.8 trillion 

Rounding the answer to the nearest ten = $21 trillion

8 0

3 years ago

What are some of the advantages and disadvantages of buying a home compared to renting.

nignag [31]

well with buying a home you are stuck with it you cant just move out but with renting you can say ohh im moving and you can give them your key and get out its really not that bard

5 0

3 years ago