Suppose that Karen deposits $500 into her checking account at the bank. The reserve requirement for Karen'sbank is 12%. Assume the bank does not want to hold any excess reserves of new deposits.a. Use this information to complete the table below to show how the bank's assets and liabilities change whenKaren deposits the $500.AssetsLiabilitiesChange in Reserves: $Change in Deposits: $Change in Loans: $b. Why are deposits considered liabilities for a bank?Deposits can be loaned out by the bank.Deposits can be withdrawn at any time.Deposits pay interest to the owner.Deposits must be kept as reserves at the Federal Reserve.14.value:10.00 pointsAssume the economy is currently in equilibrium at its full-employment level of output, the money market is inequilibrium, and the MPC = 0.75.a. Suppose there is a decrease in consumer confidence that causes aggregate demand to decrease by $32billion. Show the decrease in aggregate demand on the graph.Instructions:Use the tool provided 'Aggregate Demand' to plot the new aggregate demand curve. Use the toolprovided 'New GDP
Answer: With the left shift in Aggregate demand resulting from the tax increase causes the price level to slide back to <u>equilibrium</u> level.
<u>Explanation:</u>
When there is an increase in the level of the taxes by the government, the price of the particular good increases because of the taxes. This leads to the fall in the level of the aggregate demand of that good and there is a left shift in the aggregate demand curve.
But this will lead to the falling back of the price level to the equilibrium level because even though the demand falls but the supply level does not change. So there is an excess of supply level in the economy. This leads to the fall in the level of the price back to the equilibrium level and leaving the economy back to the normal situation.
Answer:
This question requires us to calculate net income and return on assets for the year.
Net income
As sales and profit margin on sales is given so net income can be calculated as follow.
Net income = sales * profit margin
Net income = 837,900 * 8% = $ 71,832
Return on investment
To calculate return on asset we first have to find total asset. Total assets can be calculated as follow.
Asset turnover ratio= Sales/ Asset
Asset = 837,900/1.9 = $ 441,000
Return on asset = 71,832/441,000 = 16.29%
Oil production industry controlled the politics and economy of texas for most of the twentieth century.
In macroeconomics, an industry is a sector of the economy that produces a set of closely related goods, goods, or services. For example, we can mention the timber industry or the insurance industry.
Industries are subject to various types of risks arising from a volatile macroeconomic environment, technological change, politically induced tariffs, competitive threats and other reasons. These can adversely affect the profitability, sales, cash flow, growth and stock price of companies within each industry group.
Texas is a state in the south central United States. With 268,596 square miles and over 29.1 million residents as of 2020, the state is the second largest state in the United States by area and population.
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