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.
Answer:
Mid-latitude steppe and desert climate, major climate type of the Köppen classification characterized by extremely variable temperature conditions, with annual means decreasing and annual ranges increasing poleward, and relatively little precipitation.
Explanation:
The correct answer is A. Slavery was not an issue
In the beginning of the 1800's slavery was still a big thing in the south even though the North disproved of it. That is one of the main reasons why the civil war was fought and why the emancipation proclamation was made to free the slaves from rogue states.
The Dustbowl was the nickname due to dust storms that damaged the agriculture in the U.S and also the severe drought
