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Paul [167]
3 years ago
14

If the currency in circulation is $500 billion, the required reserve ratio is 5 percent, checkable deposits are $700 billion, an

d excess reserves total $10 billion, then the money multiplier for the M1 is
Business
1 answer:
BARSIC [14]3 years ago
7 0

Answer:

2.35

Explanation:

The computation of the money multiplier for the M1 is shown below:

As we know that

Money supply(M1) = Currency in circulation + Checkable deposits

M1 money supply is = $500 billion + $700 billion

= $1,200 billion  

Now the M1 money multiplier is  

We know that  

Money multiplier = Money supply ÷ Monetary base

where,

Monetary base = Currency in circulation + Bank excess reserves

 = $500 billion + $10 billion

= $510 billion  

We know that,

Money multiplier = Money supply ÷ Monetary base

= $1,200 ÷ $510

= 2.35

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Question 12
sesenic [268]

Answer: Consumer Spending

Explanation:

Consumer or consumption spending is the largest component of GDP and represents spending by households for goods and services. The goods purchased are to satisfy utility and not for investment.

A computer purchased for home use will therefore fall under Consumer spending because it was bought to satisfy the needs of the household. Had it been bought for a business it would have been an investment.

7 0
3 years ago
New home construction is at an all-time high, due to increased demand the cost of new homes has gone up 15%,
belka [17]

Answer:

Peak

Explanation:

The business cycle refers to the routine growth and decline of economic activities in a country. Naturally, an economy experiences periods with high economic activities and seasons with subdued growth.

The peak is the business cycle when the economy experiences high growth. At the peak cycle, businesses experience high sales volumes, the rate of unemployment is low, and prices are high. The level of economic growth is measured through GDP. At the peak, the GDP value is high.

4 0
3 years ago
Kimberly, a single taxpayer, sold three capital assets during September 2019. She sold a collectible painting held five years fo
lawyer [7]

Answer:

$1,050

Explanation:

since these three transactions involved capital gains or losses (investments lasted more than 1 year), they will be taxed using the capital gains tax rate = 15%

total capital gains = $3,000 (painting) + $5,000 (stocks) - $1,000 (other stocks) = $7,000

total taxes due = $7,000 x 15% capital gains tax rate = $1,050

5 0
3 years ago
Employees who perceive layoff procedures to be fair tend to continue to support and trust their employers.
gayaneshka [121]

Answer:

True

Explanation:

Employees who perceive that their employers treat them fairly will always support them. This applies to good consequences (raises, awards, etc.) and also bad consequences (layoffs, penalties, wage reduction, etc.). This concept of fairness in power applies to almost all the activities in our lives.

For example, you are playing baseball and you perceive that the umpire is openly biased against you, that will make you feel disappointed, maybe even mad and definitely you will not enjoy the game. The same applies to our teachers and how they treat all the students, or our parents and how they behave with our siblings, etc.  

8 0
3 years ago
How does a diversified investment portfolio reduce investors’ risk of losing money?
Sveta_85 [38]
Because if they know how diverce their community is they know how to spend it evenly and fairly among the community and so they won't loose money because a portfolio kepps up with the tabs,the profits,and the investment to keep it organized and easy to access
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3 years ago
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