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.
I think it is d. Persian empire but I could be wrong :/
1. Role of textile manufacturing in initiating industrialization
Before industrialization the textile manufacturing system was a slow method, it demanded time and it was usually sold in local communities. But in the 1700s inventors created machines - such as the wheel shuttle and cotton gin - and techniques that improved the textile production made those businesses grow and stimulated the coal and the iron industries.
The boom of textile industrialization boosted the import of raw materials such as cotton, improved transportation of those materials and made the economy move as a whole and initiate industrialization.
2. How transportation technology advanced the Industrial Revolution
Before the Industrial Revolution transport of goods demanded a long time, it took sometimes months to send a letter or to transport something across cities. With the industrial revolution the demand increased, industries needed more and more raw materials and goods to continue production. This pushed the construction of roads, river traffic, steamboats, canals, and railroads. Those transports made production and transportation of goods easier and boosted, even more, the industrial revolution because it permitted to spread selling around the country.
3. Why the first factories were more efficient than the earlier putting-out system
The putting out system is a system that subcontracts work. A central agent contracts subcontractors that complete the work for the agent. This has many problems because it was a domestic system which workers mostly worked from home in pre-urban times.
With the development of new technology such as machines that help with the manufacturing system, the first factories became more efficient because they brought workers and machines together in one place, it increased the production and time of production was smaller.
Answer:
False
Explanation:
The Spanish king chose people to be governors in the colonies.
