Answer:
The increase in reserve will ultimately lead to an increase in the money supplied.
Explanation:
From the scenario under study, the bank is greeted with uncertain economic realities. To cope with this, the bank resolves that rather than lend out excess reserves, it should rather increase the percentage of deposits held as reserve from 10% to 25%. Thus, this leads to a multiplier effect. And the reserve ratio from the forgoing is 1 to 4. That is, 1/10 to 1/4. Meaning there's a reduction in multiplier effecf of 10 to 4. And looking critically, this is a reciprocal of the new reserve ratio of 1/4
When bank hold more reserve, the ripple effect is that the Fed would buy more bonds. To increase the money supply by $200, however, the Fed will need to get a bond of $50.
The implication of this is that the bank reserve will rise in same amount. But taking the multiplier effect into cognizance, a small multiplier will be occasioned in form:
$50 * 4= $200.
Effectively, we have increased the money supply by $200, owing to the multiplier effect.
Answer: Increased it's product mix width.
Explanation:
The product mix width of a company is the number of product lines a company has for sale in the market.
The product line of a company are individual but related products a company has for sale.
An example of product lines of a company could be a company producing: refrigerators, air conditioners and stabilizers. The company in this example would have a product mix width of three.
Answer:
TRUE! HOPE THIS HELPS! :)
Explanation:
Answer:
The correct answer is 4,000 shirts.
Explanation:
According to the scenario, computation of the given data are as follows:
Selling price = $35
Labor cost = $5
Cost of material = $10
So, Contribution margin amount = $35 - $5 - $10 = $20
And fixed cost = $60,000 + $20,000 = $80,000
So, we can calculate the breakeven units by using following formula:
Breakeven units = Fixed cost ÷ Contribution margin
= $80,000 ÷ $20
= 4,000 shirts
