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Suppose the Federal Reserve increased deposits by $100 billion, but the reserve requirement on all deposits was 100%. What impact would the change in deposits have on the money supply?
Select one:
a. The money supply would increase by $100 billion.
b. The money supply would increase by an infinite amount.
c. The money supply would decrease by $100 billion.
d. The money supply would decrease by an infinite amount.
e. The money supply would not change.
Debt can be a double-edged sword, depending upon the interest rates and the return on the investment. Debt is generally part of a company's financial structure. The upcoming discussion topic is about the financial structures of MNEs.
Payback period Jordan Enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.
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Find out who the producers of PVC pipe are in the US and call up the plant and talk to the plant manager or the sales manager.
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