Answer:
Explanation:
Each of these effects would most likely influence Tommy's order differently. The real-income effect would most likely cause Tommy to buy the large steak and salad regardless of the increase in price since individuals tend to spend more when they start making more money. The substitution effect on the other hand would most likely cause Tommy to order a smaller steak since it costs more but at the same time order, more salad since the price has not increased as the steak did.
Answer:
Following are the explanation of the given points:
Explanation:
In choice (a):
The Fed was expected to purchase securities worth $2 billion, in will consist of up to two billion dollars, which adds the vales $ 40 and $2s equal to $42 billion and it minimizes securities by two billion Dollars (60-2$=58 billion dollars). The reserves required for a demand of 200 billion dollars are $40 billion (= 20% of 200 billion dollars).
The excess assets are two billion dollars (= 42 billion dollars-40 billion dollars) as well as the financial system will add 10 billion dollars more (= 2 billion dollars x 5) to the supply of money (by lending money).
In choice (b):
The Financial banks are expected to borrow from the Fed $1 billion. In the financial institutions, it can now raise (by loaning money) its supply of cash by 5 billion dollars (= $1 billion * 5).
In choice (c):
The adjustment throughout the reserve ratio doesn't change the balance sheets itself. If either the reserve ratio is assumed reported having reduced from 20% to 19%, then assets required currently stand at $38 billion (= 19% of $200 billion (= 0.19 x 200 = $38 billion), with financial institutions still able to increase their capital (by loans) by $10.53 billion (= $2 billion (1/0.19)). Proof: $210.53 billion 19% is $40 billion.
Following are the attachment of the table:
<span>Pay the service center with his VISA credit card....</span>
Answer:
Poe's Year 2 Basic Earnings per share = $0.9
Explanation:
Provided Year 2 Net income = $330,000
Cash dividend paid to preference shares = $60,000
Net earnings available for equity = $330,000 - $60,000 = $270,000
Now outstanding common equity = 300,000 shares
Earnings per share = $270,000/300,000 = $0.9 per share
Note: Dividend paid to common stock is also earnings of common stock, that is dividend is part of common stock.
Therefore dividend paid to common stock will not be deducted and preference shares are paid in priority to equity, therefore dividend to preference is deducted to get the value of earnings available for equity.
Final Answer
Poe's Year 2 Basic Earnings per share = $0.9