Solution:
The reserve ratio is 10%.
Money multiplier = 
= 
= 10.
So, the money multiplier increases by 10.
Money supply = amount x money multiplier = 1,000 x 10 = 10000
Therefore, because any certain items are equivalent, the rise in the currency supply is 10000 dollars.
When the FED sells 1,000 million worth of debt, this would further increase the monetary market, as the investments are fresh funds and the income from the bank is now used in the money supply.
Answer:
Final Value= $18,253.12
Explanation:
Giving the following information:
For the next 6 years, you plan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly.
To calculate the final value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= quarterly deposit= 600
n= 6*4= 24
i= 0.08/4= 0.02
FV= {600*[(1.02^24) - 1]}/ 0.02= $18,253.12
Answer:
The value of GDP in dollars = $74600
Explanation:
Given the GDP (gross domestic product) of Australia = 100000 AUD
Given the exchange rate, 1.34 AUD = $1.
Since we have given the total amount of GDP for Australia and exchange rate. Now we have to calculate the value of Australian GDP in the dollars. We can find this by dividing the total GDP with 1.34 AUD.
The value of GDP in dollars = 100000 / 1.34 = $74626.86 or $74600.
Answer:
A technological advance makes it possible to produce more of good X with less labor. As a result, labor is released from producing good X. Some of this labor ends up producing goods Y and Z.
Explanation:
