It would be better when doing business .
Answer:
2.75 million
Explanation:
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
Increase in value of money supply as a result of the purchase is determined by the money multiplier
Money multiplier = 1 / reserve requirement
1/0.05 = 20
increase in money supply = amount of open market purchase / reserve requirement
55 / 20 = 2.75 million
Answer:
B. The Sherman Act allows the US government to regulate activities that restrain competition and trade
Explanation:
The Sherman Antitrust Act of 1890 was first legislation enacted by US congress. It was brought into force to regulate competition and trade among enterprises. This act prohibits agreement in restraint of trade or interference of power in trade like price fixing, bid rigging, etc.
The Sherman Act did not work for long as it restrict the business merger and people are confused about knowing the motive of the act as it is not designed properly.
Answer:
The stock's new expected rate of return is 14%
Explanation:
Ke=Rf+beta(Mrp-Rf)
Ke is the cost of capital is 10.20%
Rf i the risk free rate which is unknown
beta is 1.00
(Mrp-Rf) is the market risk premium at 6%
10.20%=Rf+1.0(6%)
10.20%=Rf+6.0%
Rf=10.20-6.00%
Rf=4.20%
Beta for the risky asset is 1.00*130%=1.3
New risk rate is the old rate plus inflation rate of 2.00%
new risk free=4.2%+2%=6.2%
The expected return on the new asset is computed thus:
Ke=6.2%+1.3(6%)
Ke=6.2%+7.8%
Ke=14%
Answer:
The correct answer is the well-being of each person in an economy.
Explanation:
Also known as the "Standard of living", this is something that cannot be reflected from the per capital income, whether it's nominal or real. The reason is when you divide the GDP from the population, the assumption is all the GDP is distributed among the population equally.
But this is not the case in the real world and there are many variances, discrimination, discrepancies and inequalities when the wealth and resources are distributed.