Answer:
Please find the detailed answer below.
Explanation:
PART 1:.
a. Deposit = money supply - currency held
$6,000,000 - $2,000,000
= $4,000,000
b. Bank reserve is reserve-deposit ratio x deposit
0.25 x $4,000,000
=$1,000,000
c. Monetary base = currency held + bank reserve
$2,000,000 + $1,000,000
=$3,000,000
d. Money multiplier= money supply/monetary base
$6,000,000/$3,000,000
=2
PART 2.
a. Bank reserve
$4,000,000 + $1,000,000
=$5,000,000
b. Money supply= currency held + bank deposit
Currency held= base - reserve
$10,000,000 - $5,000,000
= $5,000,000
Therefore money supply is
$5,000,000 + $20,000,000
=$25,000,000
c. Money multiplier= money supply/monetary base
$25,000,000/$10,000,000
=2.5
Answer:
B
Explanation:
because they need to deal with all practices that are done by people on environment
Answer:
Fixed overhead application rate
= <u>Budgeted fixed overhead</u>
Budgeted direct labour hours
= <u>$114,000</u>
60,000 hrs
= $1.90 per direct labour hour
Amount of overhead applied to job X387: $
Variable overhead $4.90 x 170 hours = 833
Fixed overhead $1.90 x 170 hours = 323
1,156
Explanation:
In this case, there is need to calculate the fixed overhead application rate based on direct labour hours by dividing the the budgeted fixed overhead by budgeted direct labour hours. Then, we will calculate the overhead applied to Job X387 by multiplying the fixed and variable application rate by actual direct labour hours of 170 hours.
Answer:
The price elasticity of demand is -5
Explanation:
Elasticity of demand measure the responsiveness of demand against the change in price of the product. It shows how much demand changes if there is the change in price.
Using mid point method
Change in Demand = $20 - $25
Change in Demand = -$5
Change in price = $5 - $4
Change in price = $1
As we know
Elasticity of Demand = Change in demand / Change in price
Elasticity of Demand = -$5 / $1
Elasticity of Demand = -5
