<span>C. consumers buying more of a good when its price decreases and less when its price increases</span>
Answer:
Option (E) is correct.
Explanation:
EPS = $2.75
Book Value Per Share = $22.75
Shares Outstanding = 315,000
Debt Ratio = 44%
Total equity = Shares outstanding × Book Value Per Share
= 315,000 × $22.75
= $7,166,250
Total assets = Total equity ÷ (1 - Debt Ratio)
= $7,166,250 ÷ (1 - 0.44)
= $12,796,875
Total Dept = Total assets - Equity
= $12,796,875 - $7,166,250
= $5,630,625
Answer:
The approach that further attempts to model real world uncertainty by analyzing projects the way one might analyze gambling strategies is called Monte Carlo simulation.
The correct answer is D
Explanation:
Monte Carlo simulation is an idea of taking random samples from a mathematical model that represents a real life situation. It is an approach that attempts to model real world uncertainty into the evaluation of projects.
Answer:
1)
B. more reserves, thus increasing the money multiplier and increasing the money supply.
In a fractional-reserve banking system, banks create money when they make loans. The more money they have available to make loans, the more money they create.
If the Fed reduces the reserve-requirements, banks will have more reserves available to loan out, increasing the money multiplier, and thus, the money supply.
2)
A. rarely changes the reserve requirement and does not use the reserve requirement as a major monetary policy tool.
The Fed rarely uses this monetary policy tool because it is the most powerful one. Changing the reserve requirements effectively reduce or increase the money supply like no other monetary policy tool, therefore, the effects can be dramatic, and its use is a sign that all other tools have been exhausted (open-market operations, and discount window mainly).
Explanation:
