Answer:
$7,500,000
Explanation:
Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $1,500,000 injection into the money supply results in an overall increase of $7,500,000 in demand deposits
From the stated assumptions in the question,we will use the money multiplier to calculate the eventual effect of the $1,500,000 injection into the money supply.
Money multiplier can be calculated using this formula 1/r (r is the required reserve ratio)
Therefore, the resulting change in demand deposits is as follows:
Change in Demand Deposits = Change in Fresh Reserves ×1/r
= $1,500,000×1/0.20
= $7,500,000
Answer:
1a. 1400 1b.1230 1c. Equal to
Explanation:
C= 170+0.7(yd)
Y= C+I+G
=170+0.7(Y-100)+170+150
=170+0.7Y-70+170+150
Y =1400
Z=170+0.7(1400-100)+170+150
=170+910+170+150
=1400
It is equal as evident above
<span>It's True. manufacturers offer discounts usually to large quantity or bulk buyers. this encourages buyers to buy more because the businesses give them an opportunity to save more money. usually, it is the retailers who would buy from manufacturers in bulk orders</span>
Answer: C. increase by $ 23 comma 350 . Increase by $23,350.
Explanation:
To solve this we will calculate the current Operating profit and then the operating profit after the increase.
Current Operating Profit,
= (Sales - Cost ) * No. Of units
= ( 8.75 - 4.80)* 75,000
= 3.95 * 75,000
= $296,250
Operating Profit after the Increase
= (Sales - Cost ) * No. Of units
= ( 9.50 - 4.80) * 68,000
= 4.7 * 68,000
= $319,600
The difference is,
= $319,600 - $296,250
= $23,350
If the price increase is implemented, operating profit is projected to increase by $23,350 so option C is correct.
