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.
<h3>Answer</h3><h2>Taxing and spending</h2><h3>Explanation</h3>
Fiscal policy is the ways by which a state regulates its spending levels and tax rates to observe and control a nation's economics. It is the sister approach to monetary management by which a central bank controls a nation's currency supply. The two main models of expansionary fiscal policy are tax cuts and expanded state spending.
Answer:
The battle of Palmito Ranch was fought after the war officially ended, while theses battles at Sabine Pass were fought during the war. What is interesting is that all of these battles were fought in Texas.
Explanation:
The mentioned battles in general had no significance. They didn't affected the result of war, and as we have mentioned battle of Palmito Ranch was fought after war officially ended. Additionally, what is interesting is that Confederacy had more success in these battles in general, especially in the battle of Palmito Ranch.
Answer:
Monopoly market
Explanation:
In a monopoly market there are privately owned markets as well as production
