I think its B but im not sure.
Answer: 500
Explanation:
At equilibrium, it should be noted that,
Y = C + I + G
where ,
C = Consumption = 20 + 0.7(Y - T)
I = Investment = 100
G = Government expenditure = 100
Y = C + I + G
Y = 20 + 0.7(Y - 100) + 100 + 100
Y = 20 + 0.7Y - 70 + 200
Y - 0.7Y = 150
0.3Y = 150
Y = 150/0.3
Y = 500
It is used to secure a small business loan
Answer:
$510
Explanation:
Calculation for By how much do excess reserves change
Using this formula
Change in excess reserve= Bank Deposits-(Reserve requirement*Deposit)
Let plug in the formula
Change in excess reserve=$600-($600*15%)
Change in excess reserve=$600-$90
Change in excess reserve=$510
Therefore By how much do excess reserves change is $510
Answer:
a. the income effect.
Explanation:
The income effect is the change in demand with respect to the good or service that due to change in the purchasing power of the consumer results in change in real income
Since in the situation it is mentioned that she received a big bonus this year and she decided for a trip to europe so here the purchasing power would be changed due to the income effect
hence, the option a is correct
