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:
Answer is below
Explanation:
They have tried to be good communicators in dealing with the public
The correct answer is A. the idea of representative government in which people elect officials to speak for them
The Romans established a republic when a government elects representatives to rule on their behalf.
