Answer:
$200
Explanation:
Reserve ratio is the percentage of a deposit that a bank is supposed to withhold as reserves forming part of deposit that banks make into federal reserve.
It plays a major role in deciding the amount of money available to be lent and supply of money.
<u>Workings</u>
Reserve ratio - 20%
On a deposit of $1000, The reserve is 20% * 1000 =$200
Assuming no excess reserve , the limit on the deposit is $800
The reserve = $200
Therefore , if $600 is lent , the bank can further lend ($800-$600)
$200
A thesis statement should be clearly stated and narrowly focused. False
Hi there,
Glad to be helpful.
Adjusting entries are actually what go into the books. They are similar to journal entries, but are plugged into the general ledger. Therefore, it is impossible that they go before the financial statements which are the balance sheet, income statement, etc - those are entirely dependent on the general ledgers and adjusting entries.
Therefore,
<u>FALSE! </u>
Based on the economic data given, and the fact that the government is running a deficit, the equilibrium GDP will be 336.67.
If government spending is cut to balance the budget, the new level of GDP will be 321.67.
The effect of balancing the budget will be a decrease in GDP and a slower recovery from the recesssion.
<h3>What is the equilibrium GDP?</h3>
This is given by the variable "Y" so we can find the equilibrium GDP by solving for it:
C = 50 + .7(Y – T)
Y = C + I + G - XN
C = Y - I - G + XN
Solving gives:
Y - I - G + XN = 50 + .7(Y – T)
Y - 40 - 35 + 10 = 50 + 0.7Y - 14
Y - 0.7Y = 50 + 40 + 35 - 10 - 14
0.3Y = 101
Y = 101/0.3
= 336.67
<h3>What is the new GDP if government spending is cut?</h3>
Government spending will have to be cut to a size that would make it equal to taxes so government spending becomes 20.
New GDP becomes:
= C + I + G - XN
= ( 50 + .7(Y – T)) + 40 + 20 - 10
= 271.67 + 40 + 20 - 10
= 321.67
Find out more on GDP at brainly.com/question/1384502.
Answer:less than 5% or equal to 5%
Explanation:
Due to it's high credit rating the populace will have confidence in him and it will not need to increase it's rate to attract investors.
This is similar to a government issuing treasury bill which rate of return will be less than the banks or other similar institution
