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zepelin [54]
3 years ago
9

Suppose a commercial banking system has $40,000 of outstanding checkable deposits and actual reserves of $4,500. If the reserve

ratio is 10 percent, the banking system can expand the supply of money by the maximum amount of
Business
1 answer:
ludmilkaskok [199]3 years ago
3 0

Answer: $50000

Explanation:

Based on the information that's been given in the question, firstly we need to calculate the excess reserves which will be:

= $4500 - (10% × $40000)

= $4500 - $4000

= $500

Then, the money supply that's expanded will be:

= Excess reserve / Reserve ratio

= $5000 / 10%

= $5000 / 0.1

= $50000

Therefore, the answer is $50,000.

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Answer:

The correct answer is letter "B" and "C": Keep an open mind; Separate facts from opinions.

Explanation:

At the moment of solving different-point-of-view issues, it is important to be open-minded, otherwise, we could only remain with our opinion discarding others' critic point of view that could be useful at the moment of taking decisions. Besides, it does not matter if other individuals are biased since we can separate the facts from those points of view. Separating the facts implies analyzing what others have to say in deep regardless of what their emotions can be about that matter. It implies subtracting an objective idea from a subjective point of view.

7 0
4 years ago
If interest rates increase due to inflation, but expected cash flows to a firm do not change, then you would expect stock prices
kati45 [8]

If interest rates increase due to inflation, but expected cash flows to a firm do not change, then you would expect stock prices to decline.

The current stock price is the present value of all future cash Inflows. So if the hobby fee will increase, then the discounting factor will grow, so the existing price of the destiny inflows will decrease, and the inventory charge will fall.

In economics, inflation is a popular increase in the expenses of products and services in an economic system. whilst the overall fee degree rises, each unit of foreign money buys fewer items and services; therefore, inflation corresponds to a reduction in the shopping power of money.

Higher interest costs imply better borrowing fees, human beings will sooner or later begin spending less. The call for goods and services will then drop, as a way to cause inflation to fall.

Learn more about inflation here brainly.com/question/8149429

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4 0
2 years ago
1. Which of the following is not a reason that women have traditionally received less pay for doing the same work as men?
Ksivusya [100]

Answer:

I think it might be B. or C. If I was taking this, I would pick C. Let me know if I was right!

Explanation:

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3 years ago
True or False: An ethical decision framework is useful because it can be relied on to give the manager guidance when considering
navik [9.2K]

The ethical decision framework is useful for providing guidance to the manager.

<h3>What is an ethical decision framework?</h3>

This is the document that gives a provision of the steps that have to be taken by an organization when they are faced with ethical dilemmas.

The answer to this question is true. The framework is useful for the provision of guidelines.

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5 0
3 years ago
1. Consider an economy in which autonomous consumption is 800, the marginal propensity to consume is 0.8, investment is 400, gov
Darya [45]

Answer:

  • 1800
  • 500
  • Spending multiplier =5 , Tax multiplier =4
  • new GDP =2000 , Increase GDP level = 11.11%
  • new GDP =1800 , Increase in GDP level = 0%

Explanation:

  • Equilibrium GDP = C+I+G+net export

C = private consumption

I = investment

G = government consumption

Net export = export - import

800+400+500+100 = 1800

  • Saving at GDP = (GDP-T-C) +(T-G)

(1800-400-800)+(400-500) = 500

  • SPENDING  MULTIPLIER = 1 / 1 - MPC

= 1 / 1 - 0.8 = 5

        TAX MULTIPLIER = MPC /  1 - MPC

= 0.8/1-0.8

=0.8 / 0.20 = 4

  • New equilibrium GDP = GDP + 200 = 2000

Increase in GDP level = (NEW GDP - OLD GDP / OLD GDP) *100

(2000-1800) / 1800 = 11.11%

  • New Equilibrium GDP = C + I+ G + Net export

(800-200) +400 +(500+200) +100 = 1800

Increase in GDP level = (NEW GDP - OLD GDP / OLD GDP) *100

There is no change in GDP.

4 0
3 years ago
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