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laiz [17]
3 years ago
10

If the M1 multiplier is 3 and the Fed engages in open-market purchases in the amount of $3 billion, then monetary base will Grou

p of answer choices increase by $3 billion. decline by $9 billion. decline by $3 billion. increase by $9 billion.
Business
1 answer:
zavuch27 [327]3 years ago
7 0

Answer:

A

Explanation:

By definition, open-market operations change the monetary base.

In this exercise, the Fed engages in open-market purchases, which means that the Fed expands the amount of money in the banking system. Therefore the monetary base will increase by an amount equal to the amount of open-market purchases.

So monetary base will increase by $3 billion.

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Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2018, for one year at 6 percent interest. Required Show the effects of
kari74 [83]

Answer:

See explanation

Explanation:

See the image below:

3 0
3 years ago
Journalize the December 31 adjusting entry required if the amount of unearned fees at the end of the year is $12,530. Refer to t
BlackZzzverrR [31]

Answer:

Dr Unearned fees $24,510

Cr Fees earned $24,510

Explanation:

Preparation of the December 31 adjusting entry required

Based on the information given if the balance shown in the unearned fees account was the amount of $37,040 before adjustment at the end of the year which means that if the amount of unearned fees at the end of the year is the amount of $12,530 the December 31 adjusting entry required will be :

Dr Unearned fees $24,510

Cr Fees earned $24,510

($37,040-$12,530)

7 0
2 years ago
Suppose Deborah gets a sales bonus at her place of work that gives her an extra $600 of disposable income. She chooses to spend
Mashutka [201]

Answer:

Option (d) is correct.

Explanation:

Suppose Deborah gets a sales bonus at her place of work,

Disposable Income, YD = $ 600

Consumption, C = $480

Savings , S = $ 120

Marginal propensity to consumer, MPC:

= Consumption ÷ Disposable Income

= 480 ÷ 600

= 0.8

Therefore, Deborah marginal propensity to consume (MPC) is 0.80

Option (d)

7 0
3 years ago
Testing is used by many companies during the recruitment process. Tests could include aptitude, psychological, personality, inte
zmey [24]

Personality test is an assessment that provides insight into important but intangible information about candidates such as personality, values, and work preferences.

Explanation:Pros of Personality Testing :

1, Knowing the unique information personality tests provide can help hiring managers to assess a candidate’s fit into the computer any culture.

2. Personality tests allow hiring managers to better understand how to keep individual employees engaged and motivated at work.

3. Well-designed, standardized assessments allow an organization to improve its legal defensibility by providing a fairer method of candidate comparison.

4.Personality tests can reduce the chance of putting the wrong person in the wrong role (a mistake that can be costly)

The cons of personality test:

1.Time: Personality tests can be time-consuming, which may lead to job candidate frustration or even loss to other companies.

2.Money: Personality tests can be costly to administer.

3.Accuracy: While useful for gaining behavioral insight, personality tests are not always the best indicators of how successful an individual will be in a job

4.Reliability: Candidates often answer personality tests by choosing answers they believe employers want to hear. This can make test results difficult to interpret or even invalid.

4 0
2 years ago
Martha B's has total assets of $1,810. These assets are expected to increase in value to either $1,900 or $2,400 by next year. T
Blababa [14]

Answer:

$7.24

Explanation:

PV at the risk free rate = $1,900 / (1 + 0.055)

PV at the risk free rate = $1,900 / 1.055

PV at the risk free rate = $1,800.95

Number of options needed = (2,400 - 1,900) / (400 - 0)

Number of options needed = 500 / 400

Number of options needed = 1.25

Total assets = (No of options needed*Value of equity) +  Present value at the risk free rate. Let Value of equity be C0

$1,810 = (1.25*C0) + $1,800.95

$1,810 - $1,800.95 = 1.25*C0

C0 = $9.05 / 1.25

C0 = $7.24

So, the Value of equity in this firm is $7.24.

8 0
2 years ago
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