Business, 26.11.2019 02:31, brucewayne390
Assume that the reserve requirement is 20 percent. if the federal reserve buys $5,000 worth of bonds, the largest possible increase in the money supply is. if someone deposits in a bank $5,000 that she had been hiding in her cookie jar, the largest possible increase in the money supply is. true or false: all other things equal, the money supply will expand more if someone deposits in a bank $5,000 that she had been hiding in her cookie jar than if the federal reserve buys $5,000 worth of bonds. true or false?
Answers: 2
Business, 22.06.2019 00:30, johnkings140
Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale
Answers: 1
Business, 22.06.2019 03:00, rafa3997
Fanning books buys books and magazines directly from publishers and distributes them to grocery stores. the wholesaler expects to purchase the following inventory: april may june required purchases (on account) $ 111,000 $ 131,000 $ 143,000 fanning books accountant prepared the following schedule of cash payments for inventory purchases. fanning books suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase. required complete the schedule of cash payments for inventory purchases by filling in the missing amounts. determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.
Answers: 2
Assume that the reserve requirement is 20 percent. if the federal reserve buys $5,000 worth of bonds...
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