Answer:
the money multiplier = 1/ reserve ratio in this case, the reserve ratio is 10% (required) + 10% (voluntary) = 20%, so the money multiplier = 1/20% = 5 %
What is the immediate impact of this transaction on the money supply? None, since the money supply doesn't change. When a customer deposits money in a bank, the money does not increase, only its composition changes. The maximum amount by which this bank will increase its loans from the transaction in part (a) • the bank will be able to loan = total deposit x (1 - reserve ratio) = $9,000
x (1 - 20%) = $7,200
The maximum increase in the money supply that will be generated from the transaction in part
• since the banks started to "create" money by lending the money, the money supply will increase by total deposit x ( money multiplier - 1) = $9,000 x 4 = $36,000 Assume that the government increases spending by $9,000, which is financed by a sale of bonds to the central bank. Indicate what will happen to the money supply.
• The money supply will increase.
Explain what will happen to the money demand. • The money demand will also increase because aggregate demand and income will increase. Aggregate demand will increase by $9,000 x government multiplier. The government multiplier = 1/ MPS.
<span>If I were starting a new home building business and were responsible for choosing a location to build my first subdivision, I would choose a grass land. This is because grass lands are very suitable for homes, and the soil is easy to work with. Other terrains such as tundras, deserts, and alpines may not be as suitable for living as people will want to live in areas with more natural resources.</span>
<u>Answer:</u> Slaves or Gold
<u>Reasoning:</u> The yellow line is Africa's line, marked as "Slaves, gold"
C. Nuclear power provides electricity at the lowest cost.
Their goal was to l<span>imit the amount of child labor in fact they wanted to eliminate it
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