Answer:
4
Explanation:
A bank holds 450,000 in required reserves
The bank also hold 1,800,000 in total deposits
Therefore the deposits expansion multiplier can be calculated as follows
= 1,800,000/450,000
= 4
Hence the deposits expansion multiplier is 4
The effects of the given factors on current U.S. aggregate demand would be:
- a. Lower current aggregate demand (AD).
- b. Higher current AD.
- c. Higher current AD.
- d. Higher current AD.
- e. Lower current AD.
<h3>What affects Aggregate Demand?</h3>
When there is an increased fear of recession, aggregate demand drops as people want to save money for the recession. A higher price level will make things more expensive so AD drops as well.
When there is a fear of inflation, people increase spending so they can buy goods before prices increase.
Real income growth in other countries will lead to higher exports which will increase national wealth and therefore allow consumers to purchase more goods.
An reduction in real interest rates makes loans cheaper to be acquired and spent on consumption.
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Answer:
c. Alcohol consumption decreases, whereas the alcohol market price increases if the tax is placed on the sellers or decreases if the tax is placed on the buyers.
Explanation:
Elastic demand is the situation that when the price of a good goes up the quantity demanded reduces. Since alcohol demand and supply are both elastic, If commodity tax is imposed on sellers then they decrease the supply and increase the price of alcohol. The increased price of alcohol will make buyers buy less of alcohol thereby reducing the consumption of alcohol.
the correct answer is (e) which is all of the above.
Explanation: Customers are king, their satisfaction is the ultimate goal for a business. Unsatisfied customer are difficult to retain as well, hence, their problems must always be welcomed and solved. It also aware the firm or give an idea about what needs to be changed or added. Negative word of mouth is also prevented. Its a chance for an organization to convert dissatisfied customer into highly satisfied customers and chances of retention increases as well.
