Answer:
B. Decreases both the money multiplier and the money supply
Explanation:
An increase in reserve requirement decreases the amount of excess reserves in the banking system. This decrease means that there will also be less money for banks to loan out. this will lead to a reduction in money supply. The money multiplier on the other hand is the how a small deposit can result in a greater increase in money supply in the economy. Money multiplier will also decrease in this case. This is how;
Money multiplier = 1 / reserve requirement .
Based on above equation, if reserve requirement goes up, the overall; fraction will be smaller hence a decrease in money multiplier.
So that the goverment can make things like roads and buildings, as well as pay for things like public school, courts, prisons, colleges, hospitals, etc.
Answer: $58600
Explanation:
The net income that would have been if the allowance method had been used, and the company estimated that 2.5% of sales would be uncollectible will be calculated thus:
= Reported net income + Uncollectible - (Sales × % Uncollectible)
= $63800 + $9300 - ($580000 × 2.5%)
= $63800 + $9300 - $14500
= $58600
Answer:
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the interest equals 47009 because the numbers added together
