Describe total change in money supply

Assignment Help Business Economics
Reference no: EM132640173

Suppose commercial Bank A receives a new $100 deposit.

a. What will be the total change in money supply as the result of this increase in deposits? Explain in detail.

b. Discuss any ONE reason why the total change in money supply can be less that your answer in part a). (Think about what does the change in money supply depends on).

Reference no: EM132640173

Questions Cloud

Find what were the firm budgeted collections for december : 20% are collected in the month of sale; 50% are collected in the first month after sale, what were the firm's budgeted collections for December?
Find aggregate supply curve : Use an aggregate supply-and-demand diagram to study what would happen to an economy in which the aggregate supply curve
Prepare a cost of goods manufactured schedule for clarkson : Prepare a cost of goods manufactured schedule. The data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020.
Determine the breakeven level of service : Determine the breakeven level of service , and discuss how you may want to adjust the company's operating leverage in light of your calculation.
Describe total change in money supply : Suppose commercial Bank A receives a new $100 deposit.
Explain the effect of an increase in exports : Explain the effect of an increase in exports on the equilibrium GDP in the Keynesian income-expenditure model.
Explain the effect of an increase in income tax rate : Carefully explain the effect of an increase in income tax rate on the equilibrium GDP in the Keynesian income-expenditure model.
Determine the apple company contribution margin : Illustrate your explanation by calculating the contribution margin and contribution margin percent using hypothetical values. Determine the Apple company.
Analyse the economic challenges zambia : Imagine you are a permanent secretary at the Ministry of Finance in Zambia. Analyse the economic challenges Zambia is experiencing.

Reviews

Write a Review

Business Economics Questions & Answers

  Amount of physician inducement for one physician

Using McGuire and Pauly's model of physician behavior, show graphically how the amount of physician inducement for one physician increases

  Price elasticity of market demand for retail gasoline

Suppose the own price elasticity of market demand for retail gasoline is -0.6, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1,800,000 annually. What is the price elasticity of demand for a representative gasoline reta..

  What price and output combination will the monopoly select

Suppose that a Hydrocarbon Cracking Operation, Inc. is a monopoly and has the demand, marginal revenue, and marginal cost functions as shown in the graph below. What price and output combination will the monopoly select?

  Elucidate decrease in aggreage demand will lead to

If combination of rational expectation and perfectly competitive markets , a decrease in aggreage demand will lead to? A. A small decrease in real GDP B. No change in real GDP C.

  Navigating organizational change

The health care industry, like other industries, is a very competitive environment. As organizational behavior within health care companies evolves

  Discuss at least one deadlock prevention

Discuss at least one deadlock prevention, deadlock detection, and deadlock avoidance strategies with an example Operating System that employs these strategies.

  What is the difference between a firm shutdown point

What is the difference between a firm's shutdown point in the short run and in the long run? Why are firms willing to accept losses in the short run but not in

  Discuss the strategy for improving the companys profits

You manage a company that competes in an industry that is compromised of five equal-sized firms.A recent industry report indicates that a tariff on foreign imports would boost industry profits by $ 30 million

  Concept of optimization with an inequality constraint

Use the given scenario to explain in detail the concept of optimization with an inequality constraint. You should derive and use the inequality constraint in yo

  Determine your average tax rate-marginal tax rate

Suppose in Fiscalville there is a 5 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 25 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 35 percent. ..

  Draw her budget constraint-with milk on the horizontal axis

Emma consumes only apples and milk. She does not have any income, but she inherited an apple tree and a single cow from her grandfather. The apple tree produces 100 apples each year and the cow gives 160 gallons of milk. Suppose that Emma can freely ..

  What is the future worth of cost of the machinery

The machinery has a salvage value of 5% of its initial cost. Interest is 10%. What is the future worth of cost of the machinery?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd