Assume that the banking system has total reserves of $150 billion. Assume also that required reserves are 8 percent of checking deposits and that banks hold no excess reserves and households hold no currency. The money multiplier is . The money supply is billion. Suppose the Fed raises required reserves to 12.5 percent of deposits. The new money multiplier is , and the money supply to billion.

Answers

Answer 1

Answer:

a.

[tex]Money\ Multiplier =12.5[/tex]

[tex]Money\ Supply = \$ 1,875\ billion[/tex]

b.

[tex]Money\ Multiplier =8[/tex]

[tex]Money Supply = \$ 1,200\ Billion[/tex]

Explanation:

Given

Total Reserves = $150 billion

Required Reserves = 8%

Required

- Money Multiplier

- Money Supply

- Money Supply and Money Multiplier when Required Reserves is 12.5%

Money Multiplier is calculated as follows;

[tex]Money\ Multiplier = \frac{1}{Required \ Reserves}[/tex]

When required reserves = 8%

[tex]Money\ Multiplier = \frac{1}{8\%}[/tex]

Convert percentage to fraction

[tex]Money\ Multiplier = \frac{1}{8/100}[/tex]

[tex]Money\ Multiplier =1/ \frac{8}{100}[/tex]

Convert Divide to Multiplication

[tex]Money\ Multiplier =1 * \frac{100}{8}[/tex]

[tex]Money\ Multiplier =12.5[/tex]

Money Supply is calculated as thus;

[tex]Money\ Supply = Money\ Multiplier * Total\ Reserves[/tex]

[tex]Money\ Supply = 12.5 * \$ 150billion[/tex]

[tex]Money\ Supply = \$ 1,875\ billion[/tex]

[tex]Money Supply = \$ 1.875\ Trillion[/tex]

Calculating Money Supply and Money Multiplier when Required Reserves is 12.5%

Using the same formula used above

[tex]Money\ Multiplier = \frac{1}{Required \ Reserves}[/tex]

When required reserves = 12.5%

[tex]Money\ Multiplier = \frac{1}{12.5\%}[/tex]

Convert percentage to fraction

[tex]Money\ Multiplier = \frac{1}{12.5/100}[/tex]

[tex]Money\ Multiplier =1/ \frac{12.5}{100}[/tex]

Convert Divide to Multiplication

[tex]Money\ Multiplier =1 * \frac{100}{12.5}[/tex]

[tex]Money\ Multiplier =8[/tex]

Money Supply is calculated as thus;

[tex]Money\ Supply = Money\ Multiplier * Total\ Reserves[/tex]

[tex]Money\ Supply = 8 * \$ 150billion[/tex]

[tex]Money Supply = \$ 1,200\ Billion[/tex]

[tex]Money Supply = \$ 1.2\ Trillion[/tex]


Related Questions

Explain three guidelines for evaluating ads.

Answers

Answer:

Looks, actors, what the product is

Explanation:

If it looks perfect, you know it is fake or polished in some way. If the actors talk really fast or act serious, it shows a bad sign in the product. Finally, it needs to have facts not opinions

Looks actors and what products look like these are the main points and if any are missing it will not be a successful add campaign.

1. The minimum age to receive a Class C drivers license is
A. 15
B. 16
C. 18

Answers

you would need to be at least 18 years old to hold a valid Ontario licence
c. 18 or at least be older than 21

Which of these are characteristics of successful entrepreneurs?(select four answers)

Confidence,discipline, optimism,& passion

Answers

Answer:

Confidence, discipline, optimism, & passion

Explanation:

You are correct. :)

Which of the following does not promote increased international trade and economic growth?

A. High tariffs
B. Technological improvements
C. Industrialization
D. Trade liberalization​

Answers

Answer:

High Tariffs              

The answer is A) High Tariffs

Jaden works for LeoHart. He meets with a team to discuss shareholders’ interests and assign managers to run certain parts of the company.

Answers

Answer:

Jaden have to deal with good products

Explanation:

Jaden have to advertise the product and be good bheaving to them

If you took $1,000 and put it into an interest-bearing savings account compounding quarterly at 3%, how much would your fund be worth at the end of one year? A: $1,030.00 B: $1,120.00 C: $1,030.34 D: $1,120.33

Answers

Answer:

C. $1030.34

Explanation:

Given:

Principal = $1,000

Interest = 3%

Number of Times = Quarterly

Time = 1 year

Interest Type = Compound Interest

Required

Amount at the end of the year

To solve this, I'll make use of Amount formula which is;

[tex]A = P(1 + \frac{r}{n})^{nt}[/tex]

Using compound interest notations, the given parameters are:

P = $1,000

r = 3%

t = 1

Quarterly means 4 times a year;

So, n = 4

Solving for Amount (A), the formula becomes

[tex]A = \$ 1000(1 + \frac{3\%}{4})^{4 * 1}[/tex]

[tex]A = \$ 1000(1 + \frac{3\%}{4})^{4}[/tex]

Convert percent to decimal

[tex]A = \$ 1000(1 + \frac{0.03}{4})^{4}[/tex]

[tex]A = \$ 1000(1 + 0.0075)^{4}[/tex]

Solve the expression in the bracket

[tex]A = \$ 1000(1 .0075)^{4}[/tex]

Solve the exponent

[tex]A = \$ 1000 * 1.03033919066[/tex]

[tex]A = \$ 1030.33919066[/tex]

[tex]A = \$ 1030.34[/tex] (Approximated)

Hence, the amount at the end of the year is approximately $1030.34

your answer should be C $1,030

Which of the following statements is false? A. We are able to assert dominance over others most exclusively with eye contact in a matter of seconds when we first encounter one another B. We tend to direct our comments toward those from whom we expect or what like feedback C. Males consistently give more eye contact in females D. There is more Mutual contact between friends than other

Answers

Answer:

Explanation: need points :D

Economics: Which items make up the marketing mix?

Answers

Answer: Price, Product, Promotion and Place.

Explanation:

Answer:

price, product, promotion and place

Explanation:

plz follow me and give brainliest

How can a country respond to a trade embargo?

A. By developing its infrastructure

B. By pursuing a policy of globalization

C. By seeking other trading partners

D. By imposing a protective tariff​

Answers

Answer: C. By seeking other trading partners

What is one of the advantages of having a F a c e b o o k fan page instead of a personal page? Question 10 options: Receiving fewer personal messages Sending bulk messages Saving time More personal convenience

Answers

Answer: "More personal convenience".

Explanation:

A F acebook Fan Page is a business account.

It represents a company or organization.It offers unique tools as an added advantage for managing and tracking engagement.

One of the advantages is "More personal convenience".

F acebook fan page has the option of keeping personal page of a person separated and not connected to it.

It can be controlled by the privacy settings on the personal page and optimize the publicity for Fan Page.

Hence, the correct option is "More personal convenience".

Answer:

Sending bulk messages

Explanation:

One of the main differences between a Faceb00k profile and a fan page is you can send bulk messages to all your fans. This is according to the provided textbook, which I recommend reading if you want the answers to more of your questions.

What is one downside to environmental-protection laws?
A. They reduce government revenue
O O O
O B. They involve more censorship
C. They destroy productive resources
O D. They increase unemployment​

Answers

Correct answer is D because as companies have to follow environmental protection laws they have to spend more money to ensure they are following the laws. This loss of money would lead to a loss of profit and to regain that lost profit the business would have to fire some employees to reduce their costs and thus regain their lost profit.

The laws which are created to protect the environment are known as environmental protection laws. It includes water law, soil protection law, pollution control law, chemical law, etc.

Examples of environment protection laws:  

Chemical Safety Information, Site Security, and Fuels Regulatory Relief Act. Beaches Environmental Assessment and Coastal Health (BEACH) Act. Atomic Energy Act (AEA) Clean Water Act (CWA) (original title: Federal Water Pollution Control Amendments of 1972)

The first environment protection law was created in 1969. The Environmental Protection Agency is the agency that deals with environmental protection matters.

Companies have to comply with the various environmental protection laws. Laws created to control pollution lead to a slight reduction in productivity and employment especially in energy and pollution-intensive sectors during the transition period when the companies shift from polluting activities towards cleaner and less polluting ways of production.

So, D is the correct answer

Learn more about the role of EPA here:

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In 2012 London hosted the Olympic Games. Explain why business and sales within the hospitality and catering sector increased during and after the games.

Answers

The games increased because people came to the area to celebrate their country winning

Which of the following accurately describes one way that individual goods
differ from public goods?
A. All individual goods are normal goods.
B. Demand for individual goods is always inelastic.
C. Consumer rivalry results in decreasing marginal utility for
individual goods.
D. People can be excluded from using individual goods if they don't
pay.​

Answers

D. People can be excluded from using individual good if they don’t pay
The correct answer is D. People can be excluded from using individual goods if they don't
pay.

Should senior citizens, students, and children be allowed to pay cheaper prices for goods and services

Answers

Answer:

Price discrimination

Explanation:

Price discrimination refers to a marketing tactic in which the seller invoice different prices to clients for the identical type of product or service they are offering to the customers

While on the other hand, In pure price discrimination, the seller charges the maximum price from each customer

Therefore in the given situation, here price discrimination should be used

Yes I agree totally correct love this students..

How the nation’s total income is spread out among its population is referred to as _______. -) workforce -) income distribution -) the enterprise zone -) the poverty rate m

Answers

The answer is 2.
It is referred to as income distribution.

HEYA PAL!!

Answer:

It is referred to as income distribution.

Explanation:

i know the Answer is income distribution because

workforce is the people engaged in work or available for work, either in a country or area or in a particular firm or industry.

the enterprise zone is an area in which state motive such as tax are offered to encourage business investment. meaning it is money for business investments.

and poverty rate is the ratio of the number of people (in a given age group) whose income falls below the poverty line.

so, there is income distribution left because not only it suits the answer but as long as I remember, i knew the definition of it .

Hope it helps!!

Kids Early Start (KES) operates from Monday to Friday. KES provides childcare and educational services for inner-city kids between ages of 3 months and 5 years. It has fixed expenses of $35,000 per week and charges parents $15 per day for each child who attends the program.

Answers

Answer:

Actualmente, más de la mitad de los niños menores de 5 años en Estados Unidos asisten periódicamente a algún tipo de programa de guardería o preescolar fuera del hogar. Las experiencias de estos niños en estos lugares afectarán sus vidas futuras. Para muchas familias, lamentablemente, la educación inicial y el cuidado infantil de buena calidad no están disponibles o no son accesibles.

Con el objetivo de tomar medidas para abordar los problemas que se presentan, la declaración de política de la American Academy of Pediatrics (AAP) titulada, "Educación inicial y cuidados infantiles de calidad desde el nacimiento hasta el jardín de niños" (en inglés), detalla tanto la importancia de la educación inicial y los cuidados infantiles de calidad como lo que su pediatra puede hacer para ayudarlo a encontrar estos servicios cerca de su casa.

Explanation:

Presently, more than half of young children in the United States under the age of five consistently attend some kind of preschool or day care program outside the home.

These kids' experiences there will have an impact on how they live in the future.

What does early childhood education process quality entail?

The daily interactions and activities that children have in ECEC settings that promote development are referred to as "process quality."

Prior research has mainly evaluated process quality through careful observation of the behaviors and interactions children take.

The American Academy of Pediatrics (AAP) policy statement aims to take action to solve the current problems. Unfortunately, many families lack access to or availability of high-quality early childhood education and care.

For more information about American Academy  to refer link

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With a(n) _______, the full amount of the loan is received when the contract is signed, but only the interest is paid over the life of the loan. The principal is then paid on the date that the loan is due. Question 2 options: retirement loan balloon loan line of credit installment loan

Answers

Answer:

Installment Loan

The demand for digital media has increased over the last several years. How would this affect the wages paid to web developers?

Answers

Answer:

Increase in wages

Explanation:

Nowadays we can see that the demand for digital media is increasing immensely, due to which there is also a greater need for a web developer who designs and runs a digital media platform.

Web developers are being paid more salary and wages, due to their high requirement, they get fair wages and also get more employment opportunities.

Answer:

increase

Explanation:

Nowadays we can see that the demand for digital media is increasing immensely, due to which there is also a greater need for a web developer who designs and runs a digital media platform.

Web developers are being paid more salary and wages, due to their high requirement, they get fair wages and also get more employment opportunities.

Which idea best explains the Datasheet view?
O a default setting for hiding the structure of a table
O a default setting for displaying all the data in a table
* a nondefault setting used to edit the forms in a database
O a nondefault setting used to display tables in a database

Answers

Answer:

a default setting for displaying all the data in a table

Explanation:

Datasheet View is default settings in Database Management System, which allows access to view the displayed data organized in columns and rows similar to an excel worksheet.

It also allow options for enter, delete or modify the data in a table.

Hence, in this case, the best idea that explains the Datasheet view is a default setting for displaying all the data in a table

B. A default setting for displaying all the data in a table

According to Florida law, a child between the ages of 4 and 5 may only use a seat belt in lieu of a
specialized device if:
a) the driver is not a member of the child's immediate family and the child is being transported gratuitously
b) child is being transported in an emergency
c) when a medical condition requires an exception
d) all of the above

Answers

B

Because if the child is an emergency they are required to wear a seat belt for their safety.

The driver is not a member of the child's immediate family and the child is being transported gratuitously and  child is being transported in an emergency.

What are the traffic law's of Florida?There is a certain age and weight limits and vehicle experts recommend that you should be placing your child in the rear seat until he or she is less than 20 pounds of weight or less than 4 years of age.Children below 4 years of age are restrained in the vehicle’s rear seat and must always be seated in the car seat with all the belts on.

To learn more about Traffic laws of Florida refer: https://brainly.com/subject/law

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DTO, Inc., has sales of $15 million, total assets of $12.6 million, and total debt of $5.6 million. Assume the profit margin is 8 percent. a. What is the company's net income?

Answers

Answer:

There the company's net income is $1.2 million.

Explanation:

Solution

Given that:

The Profit Margin is = 8% of Sales

Thus

DTO Inc's Net Income will be 8% of $ 15 million =$ 1,200,000 or $ 1.2 million

=$15 million *8% = $1.2 million

(ROA) or Return on Assets  = Net Income / Total Assets

= $ 1.2 million / $ 12.6 million

= 9.52%

Then

Total Assets = Total Debt + Total Equity

So the Total Assets are $ 12.6 million, and the Total Debt is $ 5.6 million, then the Total Equity works out to $ 7 million.

=$12.6 million - $ 5.6 million

=$7 million

Hence

Return on Equity (ROE) = Net Income / Total Equity = $ 1.2 million / $ 7 million = 17.14%

Camera 1 costs $4,900. It should last for eight years and have annual maintenance costs of $220 per year. After eight years, the magazine can sell the camera for $290. Camera 2 costs $4,400. It will also last for eight years and have maintenance costs of $790 in year three, $900 in year five, and $1,000 in year seven. After eight years, the camera will have no resale value. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Required: 1-a. Assume that an interest rate of 8% properly reflects the discount rate in this situation and that maintenance costs are paid at the end of each year. Determine the total cost of cameras. 1-b. Which camera should Hollywood Tabloid purchase?

Answers

Answer:

Use formula: (((F1^F2) - (F1*F2)) / ((F2-F1) + (F1*F2))) /  % of hours

Explanation:

What are the consequences of Real wage unemployment?

Answers

Answer:

Explanation:

Firstly, in a recession, if you cut wages, it will cause a fall in spending because people have less income, this will reduce aggregate demand and therefore lead to lower economic growth. This, in turn, will lead to less demand for labour.

This is a good question, I feel like the person who first responded gave a good detailed academic answer!

How does physical, chemical and biological factors affect the environment and examples of each

Answers

Physical factors shape the environment and determine climate rainfall and vegetation. Chemical factors determine acidity levels of soils, radioactivity and natural chemicals found below the soil. They are also important for the nutrition of other animals. Biological factors include all of the plants and animals and they help change the environment daily.

A(n) ________ ad tries to convince consumers that everyone else is already buying and enjoying the product, and they should too.

Answers

Answer: Bandwagon

Explanation: Advertisements which are structured in other to pounce on the emotion of the target audience mainly by utilizing the the fact that some consumers are already on board to spur others. It aims to influence consumer decision by making it known that a certain group, market have embraced or adopted a certain product. The main intention is to appeal to other potential consumers to come on board in other to be a part of what others are doing or enjoying. It is usually regarded as a propaganda or persuasive marketing strategy.

ASAP!!!! Really easy

Answers

Answer:

Go to Excel and use the following business plan:

Explanation:

revenue sheet, gross profit, and firm statement

Answer:

Go to Excel and use the following business plan:

Explanation:

revenue sheet, gross profit, and firm statement

Assume your city government has been contacting with a single garbage collection firm that has been granted an exclusive franchise, the sole right, to pick up trash within your entire city limits. However, it has been proposed that companies be allowed to compete for business with residents on an individual basis. The city government has estimated the price residents are willing to pay for various numbers of garbage collections per month and the total cost facing the garbage collector per resident as shown in the following table.

Pickup (Q) Price/Pickup Total Revenue (TR) Marginal Revenue (MR) Total Cost (TC) Marginal Cost (MC) Average Total Cost (ATC)
0 $4.20 0 --- $3.20 --- ---
1 $3.80 $4.20
2 $3.40 $5.60
3 $3.00 $7.80
4 $2.60 $10.40
5 $2.20 $13.40
6 $1.90 $16.80

1. What are the fixed costs per month of garbage collection per resident? Explain your answer
2. Considering that the current garbage collection firm the city has contracted with has a monopoly in garbage collection services, what is the current number of collections residents receive per month and the price charged residents for each collection? What is the economic profit received from each resident by the monopoly firm? (Note: Profit received form individual resident must be calculated a per unit basis)
3. If competitive bidding were allowed and therefore a competitive market for garbage collection services developed, what would the number of collections per month and the price charged residents per collection? What is the economic profit received from each resident by the competitive firm? (Note that in a competitive market (chapter 13), P=MC=MR)
4. Based on the above analysis, should the city government allow competitive bidding? Why? Would you expect there to be any quality differences between the monopolistic and competitive trash collection firms?

Answers

Answer:

collect and recycle

Explanation:

Which of the following statements about cash basis accounting is true? (Select the best answer.
A.The IRS allows all types of corporations to use it
B.It ensures the company always knows how much cash flow it has.
C.It is more complicated than accrual basis accounting.
D.It follows GAAP standards​

Answers

Answer: B.It ensures the company always knows how much cash flow it has.

Explanation:

Cash basis accounting is an accounting method whereby the revenues and expenses are recognized as at the particular time that the cash is gotten or paid out. It should be noted that for the accrual accounting, the income is recognized when revenue is earned and also records the expenses when the liabilities are incurred not taking into cognisance of when the cash is either received or paid.

In cash basis accountant, the expense is debited and the cash is credited in the period that the bill is paid. Finally, it should be noted that the cash basis accounting is not also acceptable under generally Acceptable Accounting Principles (GAAP).

As of December 31, the Stanford company has the following information. Use this information to answer questions 1 to 3. Cash $5,000 Accounts Receivable 15,000 Inventory 40,000 Prepaid Insurance 3000 Fixed Assets 100,000 Accounts Payable 15,000 Notes Payable in 5 Months 12,500 Salary Payable 25,000 Notes Payable in 5 years 35,000 Owner’s Equity 98,000 2. What is the company's Current Ratio? Question 3 options: 2.5 1.75 2.1 1.2

Answers

Answer:

1.2

Explanation:

current ratio = current assets / current liabilities

current assets = cash ($5,000) + accounts receivable ($15,000) + inventory ($40,000) + prepaid insurance ($3,000) = $63,000current liabilities = accounts payable ($15,000) + notes payable in 5 months ($12,500) + salaries payable ($25,000) = $52,500

current ratio = $63,000 / $52,500 = 1.2

Use the information presented in the curve to answer
the following question.
What is the equilibrium price for the product?
$25
$20
$15
$10

Answers

Answer:

20

Explanation:

The answer must be $20 after calculating it.
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