The answer is the option d. break-even analysis.
Break-even analysis is the method in which you make the incomes equal to the costs and expenses.
The income is the function that relates number of products manufactured and sold with the income, while the costs and expenses is the function that relates the number of products with the total cost.
When you make both income and costs equals you can determine the number of products that make you even (income = costs).
It illustrates the business cycle, I think.
Answer:
$600 billion
Explanation:
Given that,
Currency held by the public = $100 billion
Reserves held by banks = $50 billion
Bank deposits = $500 billion
The money supply refers to the total money in the circulation.
Therefore, the total money supply is as follows:
= Currency held by the public + Deposits with the bank
= $100 billion + $500 billion
= $600 billion
