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2 years ago

The central bank buys $15,000 worth of bonds in the open market from Christopher, who

Business

1 answer:

vladimir2022 [97]2 years ago

4 0

Answer:

(a) What is the amount by which Carla Bank's liabilities have changed?

Carla Bank's liabilities increased by $15,000 (bank deposits are liabilities).

(b) Calculate the change in required reserves for Carla Bank.

Carla Bank's reserves must increase by $15,000 x 5% = $750

(c) What is the dollar value of the maximum amount of new loans Carla Bank can initially make because of Christopher's deposit?

Carla Bank can loan $15,000 x 95% = $14,250

(d) Based on the central bank's open-market purchase of bonds, calculate the maximum amount by which the money supply can change throughout the banking system.

Money multiplier = 1 / 5% = 20

The money supply has the potential to increase by $15,000 x 20 = $300,000

(e) How will the change in the money supply in part (d) affect aggregate demand in the short run? Explain.

Aggregate demand will increase since the total money supply increases. This should also help to decrease the interest rates and foster investment.

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What is the foundation for the marketing plan?

malfutka [58]

Answer:

Market analysis

Explanation:

Market analysis is the foundation of the marketing plan. Every marketing plan should include a clear explanation of the market segmentation, target market focus, and a market forecast.

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3 years ago

The production function q = 22K^0.6 L^0.3 exhibits A. constant returns to scale. B. increasing returns to scale. C. unknown retu

Ivenika [448]

Answer:

D. decreasing returns to scale.

The answer and procedures of the exercise are attached in the image below.

Explanation

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2 years ago

Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient

RSB [31]

Answer:

1. Cost of the old X-ray machine - SC

2. The salary of the head of the Radiology Department - None

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4. Cost of the new laser printer - DC

5. Rent on the space occupied by Radiology - None

6. The cost of maintaining the old machine - DC

7. Benefits from a new DNA analyzer - OC

8. Cost of electricity to run the X-ray machines - DC

Where,

SC - Sunk cost

DC - Differential cost

OC - Opportunity cost

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3 years ago

Suppose this monopolist can price discriminate across its customers and sets 2 prices in the market. Let P M represent the stand

Orlov [11]

Answer:

hello your question is incomplete attached below is the missing part

answer: Pd = 1658 , Qd = 42

Explanation:

The monopolist will choose a discount price of ( Pd ) = 1658 and sell 42 units of the good in the discount market

since the standard price is at $1800 and the Qm ( standard monopoly quantity) is at 200 for the Monopoly to be profitable the amount of good to be sold to customers with reservation prices greater than or equal to standard price should be greater than the good offered at discount price and also the discount price after using a coupon should be lower than the standard price (Pm)

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3 years ago

Stock in CDB Industries has a beta of 1.10. The market risk premium is 7 percent, and T-bills are currently yielding 4 percent.

12345 [234]

Answer:

Cost of equity = 11.7%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.</em>

Under CAPM, Ke= Rf + β(Rm-Rf)

Rf-risk-free rate,-4%, β= Beta-1.10, (Rm-Rf) = 7% ,Ke = cost of equity

Using this model,

Ke=4% + 1.10×7%

= 11.7 %

Cost of equity = 11.7%

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3 years ago