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:
रोम वासी अकबर के पिता को विदेशी बाबर कहते थे
Explanation:
I hope help you
Answer:
Friendlier to the poor ( D )
Explanation:
conservatives believe that when the Government regulates the economy higher taxes are charged on the production of goods and services and this taxes are used in building Government owned infrastructures and they are redistributed to the poor through social security as well.
regulating the economy by the government has two distinct effect which can make the economy efficient or less efficient. example of such efficiency effect is charging of higher taxes on the production of harmful goods like chemicals which would have been overproduced in a free market hence creating a danger. while the effect of the inefficiency is the charging of higher taxes on the production of regular goods and services because this will reduce input into production of the goods thereby driving prices higher in the market.
