Answer: Banks transfer money from savers to borrowers by holding deposits and lending excess reserves. Banks also create money by making loans of excess reserves.
Explanation: Those are two primary functions.
Answer:
.d amount by which consumption increases when disposable income increases by $1.
Explanation:
The marginal propensity to consume is measured by measuring what proportion of a $1 increase in income is spend on consumption, so if the marginal propensity to consume is 0.85 it means that when income increases by $1 consumption will increase by $0.85 as (0.85*1)= 0.85
Answer:
Recession.
Explanation:
Recession is a time of slow economic activity.Businesses decrease production,unemployment rises and many consumers have less to spend.
Answer:
The correct answer is it becomes variable cost.
Explanation:
In the short run there are fixed costs and variable costs which sum up the total costs incurred. This is because in short run not all factors are variable, some factors are fixed as well. So, expenses on fixed factors come under fixed and those on variable factors come under variable costs.
In the long run though, all the factors are variable. All factors can be changed. So there are no fixed costs in the long run run. All the costs incurred on all factors become variable costs.
Answer: network
Explanation:
Network externality simply states that demand for a good or service has to do with how other people demand for that particular good or service. It means consumer's buying patterns are influenced by the purchase of others buying the product.
Therefore, a network externality exists when the number of customers who purchase a good or use it influences the quantity demanded.