Answer:
= $3,888.89
Step-by-step explanation:
First, calculate the money multiplier(MM); which is the amount of money that is generated by the banks for each dollar of reserve. In this case, it describes how a deposited amount increases the total supply of money.
Money Multiplier = 1 / reserve ratio
Reserve ratio = 9% or 0.09
Therefore, money multiplier = 1/0.09 = 11.1111
Next, use the reserve ratio to calculate the amount of increase in money supply;
= 11.1111 * $350
= $3,888.89
-400.68 glad I could help!
The first step is to subtract 5 from both sides which would heave 3x = 12. Then dividing each side by 3 you'd get $4
The correct answer is "3".
