Answer:
A) Does not change the money supply.
Explanation:
Demand deposits change the monetary base, because the monetary base equals currency plus demand deposits.
However, in itself, a demand deposit does not change the money supply. For the change in the money supply to occur, the bank must loan out some of the money in the deposit.
Answer:
ECONOMIES OF SCOPE
Explanation:
Economies of Scope concept implies producing different , but related products will reduce the per unit cost of production of the firm (relatively lesser than if the products would have been produced separately.
This happens because of backward & forward linkages in interrelated but different goods' inputs & outputs .
Ex : In this case, another byproduct - molasses has been produced of waste from sugar production, which could have otherwise been purchased input.
Economies of Production is cost reduction due to quantity & not variety production. Diseconomies of Scale & Diseconomies of Scope are their opposite phenomenas leading to cost rise . So , none of these 3 are apt.
The answer in the space provided is sales presentation. In
this stage of selling process, it is where a sales representative tries to
determine which the buyers wants and he or she would likely present products
that would make the buyers think or to have a thought of buying the product
that has been offered down to him or her.
Answer:
what is the money multiplier?
what is the total change in the M1 Money Supply?
- Just because a client deposits money into a bank it does not increase M1, it just changes its composition. The immediate effect of the deposit in the total money supply is nothing. If the bank loans the money to other clients ($581 in total loans are possible), and other clients deposit the funds in the same bank or other banks, then the money supply could increase up to $3,416.
what is the minimum amount by which the money supply will increase?
- If the bank loans the disposable funds, the money supply should increase by $581 at least.
Explanation:
The bank's required reserve ratio = reserves / deposits = $493 / $2,900 = 0.17 or 17%.
the money multiplier = 1 / required reserve ratio = 1 / 0.17 = 5.88
if a client deposits $700, the minimum amount by which the money supply will increase = $700 x (1 - required reserve) = $700 x (1 - 0.17) = $700 x 0.83 = $581
the maximum amount by which the money supply could increase = ($700 x 5.88) - $700 = $4,116 - $700 = $3,416
Answer:
A. The value of the marginal product of apple pickers increases
B. The equilibrium price of apples increases.
F. The wage of apple pickers increases.
Explanation:
- In order to keep the healthcare costs low and increase the health care benefits of the people president proposed the apple a day law. Demand for the apples increase as and the equilibrium price of the apples also increases.
- There are no changes in the marginal producers of the apples. The values of the marginal producers of the apple increases. Demand for the apple pickers also increases along with the daily wages.
