The price elasticity of demand is -2. Note that the negative sign indicates that the demand is elastic, meaning that the quantity demanded is highly responsive to changes in price.
The price elasticity of demand can be calculated using the following formula:
Price elasticity of demand = ((% change in quantity demanded) / (% change in price))
In this case, the price has fallen from $7 to $5, which represents a decrease of 28.57% ((7-5)/7). The quantity demanded has increased from 14 to 22 units, which represents an increase of 57.14% ((22-14)/14).
Therefore, the price elasticity of demand is:
Price elasticity of demand = ((57.14%) / (-28.57%)) = -2
This means that the demand for this product is relatively elastic, as a change in price has a relatively large effect on the quantity demanded.
To know more about demand, visit:
https://brainly.com/question/10489478
#SPJ11
What is regulation in an economic system?
A: Regulation is the placing of limits or restrictions on business activity by the government.
B: Regulation is the placing of limits or restrictions on business activity by producers.
C: Regulation is the removal of limits or restrictions on business activity by the government.
D: Regulation is the removal of limits or restrictions on business activity by the producers.
A: Regulation is the placing of limits or restrictions on business activity by the government.
More about regulation in an economic system:
To get its goals, the government imposes obligations on businesses and persons in the private sector like cheap and quality products, safeguards for current businesses against "fair" (and unfair) competition, cleaner air and water, and safer workplaces. Fines and in rare circumstances, even criminal punishments may be imposed for breaking regulations.
Economists distinguish between two types of regulation:
Economic Regulations: Economic regulation refers to laws that limit who can enter a firm (entry controls) and the prices they can charge (price controls).Social Regulation: "Social regulation" refers to the broad category of regulations directing how any individual or organization conducts its activities in order to rectify one or more "market failures."Learn more about economic regulation here:
https://brainly.com/question/4019212
#SPJ1
Many brick-and-mortar companies must pay attention to the new competition from the because now consumers can search the world.
Many brick-and-mortar companies must pay attention to the new competition from the internet because now consumers can search the world.
What Does Brick & Mortar Mean?A "brick-and-mortar" firm is a conventional street-side enterprise that interacts directly with its clients in a store or office that it owns or leases. Brick-and-mortar businesses include places like the neighborhood supermarket and bank. Given that most web-based companies, like Amazon.com Inc. (AMZN), typically have cheaper operating expenses and more flexibility, brick-and-mortar firms have had a difficult time competing with them.
For instance, some physical grocery stores, like Safeway, allow customers to shop for groceries online and have them delivered to their house in as little as a few hours. Offshoot terminology like "click and mortars" and "bricks and clicks" has been created as a result of the hybrid business models' rising popularity.
Learn more about brick-and-mortar with the help of the given link:
brainly.com/question/13771778
#SPJ4
A local chamber of commerce plans a seminar on ""the social responsibility of business in our community. "" what does the term reference?.
John has a rental property with four bedrooms. He just installed new off-white carpeting. John does NOT want to rent to a family with children or a dog. Which of the following wording used in his ad is permissible
When advertising is targeted at a protected class, in this case, families with children, it is illegal and prohibited to do so.
State and federal housing discrimination laws forbid advertising about the sale or rental of a dwelling in a way that indicates a discriminatory preference, in addition to discriminatory housing practices like refusing to sell or rent a dwelling, falsely denying the availability of a dwelling, and refusing to make reasonable accommodation for a disabled person.
In accordance with the Federal Fair Housing Act, "advertisement" as used in this section includes any written, spoken, or nonverbal remarks in addition to those that are printed in newspapers.
Applications, brochures, signs, banners, photographs, symbols, human models, spoken words, and phrases that imply that homes are available or not available to a particular group of people due to race, color, religion, sex, disability, age, familial status, national origin, or status with respect to marriage or public assistance are all examples of discriminatory advertisements.
Hence, in the given case where John has a rental property with four bedrooms. He just installed new off-white carpeting. John does NOT want to rent to a family with children or a dog. The Discriminating advertising is not allowed.
Learn more about advertising:
https://brainly.com/question/15611949
#SPJ1
When working with international firms, U.S. businesses Multiple Choice expect socially responsible behavior from their business partners. tend to ignore the ethics of their international partners. feel that their responsibility is limited to the United States. try to avoid judging our international business partners by U.S. standards.
When working with international firms, U.S businesses expect socially responsible behavior from their business partners.
Why do U.S businesses increasingly focus on international businesses?American businesses are aware that doing business abroad will boost productivity and broaden their population, which will promote economic expansion. Since the beginning of time, there have been numerous international exchanges, and American businesses now recognize the advantages of offering their services abroad.
To cut costs, some US companies relocate abroad. To grow their business, other companies venture abroad. Many companies can successfully operate on a global scale.
You can learn more about international business using this link:
brainly.com/question/15054188
#SPJ4
With the arrival of the industrial revolution, what did the companies do after sending salespeople across the country to sell?
With the arrival of the industrial revolution, the companies used to send their salespeople across the country to sell in order to find successful pitches to potential customers.
For a very long time, the salespeople worked like an old-fashioned craftsman, identifying who was likely to be a possible client, talking with that prospect, qualifying them, negotiating the contract, and then closing it.
They persuade clients to purchase a good or service as a salespeople. They direct the customer's journey from the first point of contact all the way up to the point of sale, utilizing one-on-one communication to match their product with their desires and requirements.
Learn more about salespeople here:
https://brainly.com/question/13209430
#SPJ1
An eligible employee may take unpaid leave under the Family and Medical Leave Act for family or medical reasons, or in certain situations for military service. Group of answer choices False True
An eligible employee may take unpaid leave under the Family and Medical Leave Act for family or medical reasons, or in certain situations for military service: TRUE
What is unpaid leave?Unpaid leave is time away from work during which an employee keeps their job but is not paid. Employees in the United States are permitted to take unpaid absences for the following reasons: self-care involves a significant health condition. There's a family emergency. Parental leave for childbirth or adoption.Purpose of Family and Medical Leave Act:Under the Family and Medical Leave Act, an eligible employee may take unpaid leave for family or medical reasons, or under certain circumstances, for military service.Therefore, the statement "an eligible employee may take unpaid leave under the Family and Medical Leave Act for family or medical reasons, or in certain situations for military service" is true.
Know more about the Family and Medical Leave Act here:
https://brainly.com/question/4014104
#SPJ4
Management states that they will tolerate one stockout every year for a specific item. If 10 orders are placed for the item each year the service level desired is:
If 10 orders are placed for the item each year the service level desired is 95%.
What is a stockout in business?Stockouts are what manifest while you run out of inventory of a specific object. An out-of-stock can appear everywhere within the supply chain, however, it affects stores' cabinets and income the maximum while it takes place because the customer is set to buy.
Stockouts generally discuss a product being unavailable for purchase at retail, as opposed to somewhere else within the delivery chain. They're maximum obvious in the fast-shifting patron items sector. The opposite of a stockout might be an overstock, wherein case there is a surplus of inventory.
Learn more about the stockout here https://brainly.com/question/16209393
#SPJ4
A company that has been subject to Securities Exchange Act of 1934 reporting requirements for five years and has an aggregate worldwide market cap of $300 million is considered a(n)
accelerated filer, A company reporting requirements for five years and has an aggregate worldwide market cap of $300 million is an accelerated filer.
More about accelerated filer?
A publicly traded company that, as of the end of its fiscal year, satisfies each of the following requirements:
As of the final business day of the company's most recent completed second fiscal quarter, the total worldwide market value of the voting and non-voting common equity held by its non-affiliates (or public float) was $75 million or more but less than $700 million.For at least 12 months, the company has been required to report in accordance with Sections 13(a) or 15(d) of the Exchange Act.The business has previously submitted at least one annual report in accordance with Exchange Act Sections 13(a) or 15(d).The company does not meet the revenue requirements (which include those listed below), so it is not eligible for smaller reporting company status.Learn more about accelerated filer here: https://brainly.com/question/14855960
#SPJ4
Insurance companies negotiate discounts with hospitals under a(n) Question 10 options: PPO. HMO. EPI. FYI.
Insurance companies negotiate discounts with hospitals under a PPO. Option A
This is further explained below.
What are Insurance companies?Generally, A corporation, which may be for-profit, not-for-profit, or government-owned, offers the promise to pay for particular expenditures in return for a recurring charge, which is referred to as a premium. For instance, if a person acquires health insurance, the insurance company will pay for (at least part of) the client's medical expenditures, if the client has any medical bills.
In conclusion, Within the context of a PPO, insurance companies negotiate savings with hospitals. Alternative
Read more about Insurance companies
https://brainly.com/question/16996203
#SPJ1
The method of cost estimating that falls between the other two cost estimating methods in complexity is the __________ method.
The method of cost estimating that falls between the other two cost estimating methods in complexity is the unit-in-place method.
What is Cost Estimation?In the field of project management, cost estimation is the process of estimating all of the costs associated with completing a project within scope and according to its timeline.
Initial, high-level estimates are often used in the earliest stages of project planning and can determine whether or not a project is ultimately pursued. Once a project is approved and an organization chooses to move forward with it, more detailed and granular cost estimates become necessary in order to appropriately allocate various resources.
A thorough cost estimate should include both the direct and indirect costs associated with bringing a project through to completion. Depending on the specifics of the venture, this will likely include various overhead costs (utilities, labor, etc.), labor costs (including both time and wages paid), materials and equipment costs, vendor fees (if the project requires third-party workers, freelancers, or other contractors), and more.
What is Unit-In-Place Method?A technique used by appraisers to estimate the reproduction cost (new) of a structure. The method involves estimating the cost of producing and installing individual components, such as the foundation, exterior walls, and plumbing. Similar methods include the trade-breakdown method and segregated costs method.
Therefore, we can conclude that the correct option is C.
Your question is incomplete, but most probably your full question was:
The method of cost estimating that falls between the other two cost estimating methods in complexity is the __________ method.
A. Comparative unit
B. Quantity survey
C. Unit-in-place
D. Reproduction cost
Learn more about Cost Estimation on:
brainly.com/question/27993465
#SPJ4
A decision by the federal reserve to change reserve requirements for banks is an example of?
A decision by the federal reserve to change reserve requirements for banks is an example of monetary policy. Central bank of a country uses a set of instruments called monetary policy to regulate the total amount increase the amount of money in circulation, promote economic growth, and put policies in place like modifying interest rates and bank reserve requirements.
With a twin purpose to maximise employment and contain inflation, the Federal Reserve Bank of the United States carries out monetary policy. Reserve requirements, the discount rate, and open market operations are the three monetary policy tools that the Federal Reserve frequently employs.
To learn more about federal, click here.
https://brainly.com/question/1951874
#SPJ1
Dima called her friend to tell her that she saved 30% on her new skirt at a discount store. Her friend told her that she could have gotten a better deal at a different store that was advertising a sale of One-third off all clothing. If the original price of Dima’s skirt was $54, how much more could she have saved at the store her friend suggested?
A. $1.11
B. $1.80
C. $36.00
D. $37.80
If the original price of Dima’s skirt was $54, the amount that she have saved at the store was option(b)i.e, $1.80.
Let's just take the sales price of the skirt Dima purchased from the discount shop as the rate of the other retailer is not provided.
Original price: $54
Discount rate: 30%
$54 x 30% = $16.20 value of the discount
$54 - 16.20 = $37.80 discounted price.
Since Dima's friend told her she could have had a better deal at a different store, this means that the discount rate is higher than 30%. i.e, the discount is 33.33%
$54 x 33.33% = $17.99 value of the discount
$54 - 17.99 = $36.00 discounted price.
Discount store: $37.80
Different store: $36.00
The different store sales price is cheaper by $1.80
Therefore, she could have saved $1.80 at the store her friend suggested.
To know more about discount rate refer to: https://brainly.com/question/13660799
#SPJ1
If a manager warned an employee not to be late for work again or they would be released, the manager was using:
If a manager warned an employee not to be late for work again or they would be released, the manager was using avoidance learning.
Behaviorists refer to the process of an organism's learning response in order to avoid being exposed to an unpleasant stimulus as "avoidance learning." The absence of the unpleasant stimulus leads to the reinforcement (desired, rewarding outcome) (or punishment).
A natural adaptive behavior that is carried out in reaction to danger is avoidance.
Since excessive avoidance has been linked to anxiety problems, psychologists and neuroscientists have used rat or mouse models to research how avoidance behaviors are learned.
Operant conditioning includes the concept of avoidance learning (also known as instrumental conditioning).
Hence, If a manager warned an employee not to be late for work again or they would be released, the manager was using avoidance learning.
Learn more about Anxiety:
https://brainly.com/question/1754863
#SPJ1
You are researching a stock currently priced at $35 per share. Call options are currently priced at $3.00, and puts are priced at $2.00. You use Black-Scholes and put-call parity to determine that calls are fairly priced, but the puts should be priced at $1.00. What would be TRUE given this information
For a profit with little risk, you should short the puts.
What does "stock" mean?A stock is a colloquial phrase for any company's ownership certificates. On the other hand, a share alludes to a certain company's stock certificate. You become a shareholder if you possess shares of a specific corporation. There are two categories of stocks: ordinary and preferred.A stock example is what?Stock refers to a portion of a company's ownership. 100 shares of the Disney Corporation are an illustration of stock.
What exactly is a stock example?Low risk investments are by definition safer than comparable ones. In comparison to options, stocks carry less risk. The right is the predetermined ability to acquire or sell an item at a predetermined price on a specific date.
learn more about stocks here
https://brainly.com/question/1166179
#SPJ4
In the capital asset pricing model, an increase in inflationary expectations will be reflected by a(n)?
In the capital asset pricing model, an increase in inflationary expectations will be reflected by a parallel shift upward in the security market line.
The Capital Asset Pricing Model (CAPM), which additionally modifies the risk premium, explains the link between a security's projected return and beta model.
The link between systematic risk and anticipated return for assets, particularly stocks, is described by the Capital Asset Pricing Model (CAPM). The CAPM is a tool that is frequently used in finance to price hazardous securities and calculate projected returns for assets based on their risk and cost of capital.
To learn more about Capital Asset Pricing Model refer
https://brainly.com/question/6267778
#SPJ4
An increase in inflationary expectations will be represented in the capital asset pricing model by a matching upward shift in the securities market line. The relationship between the anticipated return and beta model of an asset is explained by the CAPM which also alters the risk premium.
The Capital Asset Pricing Model explains how systematic risk and expected return for assets, particularly stocks, are related. The CAPM is a tool that's often used in finance to value risky securities and estimate asset returns based on risk and capital costs.
The CAPM formula seeks to determine if a stock is properly valued by contrasting its predicted return with its risk and time value of money.
To learn more about inflationary expectations, click here
https://brainly.com/question/24390085
#SPJ4
A public stock company is considered by law to be an entity with legal rights and obligations. This is known as ______.
A public stock company is considered by law to be an entity with legal rights and obligations. This is known as legal personality.
The public stock company enjoys four characteristics that make it an attractive corporate form, which are, limited liability for investors, legal personality, transferability of investor ownership, separation of legal ownership and management control.
To have legal personality means to be capable of having legal rights and duties within a certain legal system, such as to enter into contracts, sue, and be sued. Thus, it is the ability of any legal person to amend rights and obligations.
Hence, A public stock company is considered to be an entity with legal rights and obligations.
To learn more about public stock company here:
https://brainly.com/question/14214257
#SPJ1
Calculate what happens to nominal gdp if velocity remains constant at 5 and the money supply increases from $300 billion to $450 billion.
V = P×Y/M V = P×Y/M
P×Y = M x V P×Y = M x V
P×1,000 = 400×5 P×1,000 = 300×5
P = 2,000/1,000 P = 1,500/1,000
P×Y = 2 P = 1.5
The price level declines from 2 to 1.5.
The price level is determined by averaging the current prices for all the goods and services produced in an economy. Price level, in a broader sense, refers to the cost or price of a good, service, or security in the market.
Price level can be displayed as discrete values, like a dollar amount, or they can be described in narrow ranges, as ticks with the prices of securities. Price level are a crucial signal in economics, and economists pay particular attention to them.
They are crucial to the selling of goods and services as well as the spending power of consumers. In the chain of supply and demand, it also has a significant role.
To learn more about price level, click here
https://brainly.com/question/13528650
#SPJ4
Which of the following factors influences your credit score?
OA. Age or experience
OB. Address of record
OC. Race or ethnicity
OD. Default on a loan
Answer:D
Explanation:I think D because the default on a loan how much do you use loans and why do you use loans a lot do you pay them back and all that.
Answer: d
Explanation:
i just took the quiz and got it right
What did the president mean when he said he had to face ""very difficult choices"" when creating a federal budget?
The president means deciding what would be funded and what would be cut.
The goal is to have a balanced federal budget. the government spends a sum of money the same as that which is accrued in revenue. The authorities can increase revenue thru expanded taxing, borrowing money, or growing cash. All 3 selections have poor results, creating money can lead to inflation.
These financial policies fall into growing government spending and cutting taxes. If the government increases spending/shopping for it increases outputs and creates jobs(increases combination demand), causing prices to rise.
Government spending increases aggregate demand which causes costs to rise. In step with the regulation of delivery, higher charges encourage extra production. To do this, extra jobs are created. An increase in demand results in decreased unemployment and expanded output.
Your question is incomplete. Please read below to find the missingg content.
"Meeting the spending targets in this budget meant some very difficult choices."
President Barack Obama,
2012 Budget Message of the President
Read the passage.
What did the president mean when he said he had to face "very difficult choices" when creating a federal budget?
Learn more about the federal budget here: https://brainly.com/question/10959037
#SPJ4
If sarah can earn 4 percent annually for the next 35 years, how much will she have to invest today?
Sarah will have to invest $506,830.94 today if the fund earns 4% annually.
Investments are defined as assets bought or invested in with the goal of increasing wealth and setting aside funds from salary or capital gains. The main goal of an investment is to generate additional revenue or to make money on the investment over a certain amount of time.
Any method for producing potential future revenue might be referred to as an investment. Buying bonds, equities, or real estate property are a few examples of this. A property that can be utilized to create things can also be bought and regarded as an investment.
Learn more about investment here
https://brainly.com/question/25300925
#SPJ4
If your employer gives you a raise that is less than the inflation rate, then your real salary will have declined. True or false?.
True, If your employer gives you a raise that is less than the inflation rate, then your real salary will have declined.
What is Inflation?In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation. Each unit of currency can purchase fewer products and services as the overall price level rises, hence inflation is characterized by a decline in the buying power of money.
How do rising prices impact salaries?Investment decreases when inflation rises, and over time, the capital stock also decreases. Although consumption may also decrease, this has no immediate impact on the growth of capital. In addition to lowering GDP, diminishing capital stock also lowers worker productivity. Real wages, therefore, decrease as labor demand drops.
Therefore, If your employer gives you a raise that is less than the inflation rate, then your real salary will have declined is a true statement.
For more information on Inflation and salaries, refer to the given link:
https://brainly.com/question/1622389
#SPJ4
A(n) __________ fund buys stocks and bonds and then sells shares in those securities to the public.
A mutual funds buys stocks and bonds and then sells shares in those securities to the public. A mutual fund is a company that pools money from many investors and invests it in securities such as stocks, bonds, and short-term debt. The mutual fund's portfolio is made up of all of its holdings.
Mutual fund shares are purchased by investors. Most mutual funds fall into one of four categories: money market funds, bond funds, stock funds, and target date funds. Each type has distinct characteristics, risks, and rewards. Bond funds are riskier than money market funds because they seek higher returns.
To learn more about Mutual fund, click here
https://brainly.com/question/9965923
#SPJ1
Liam’s boss asked him to determine if their company is operating with too many borrowed funds. which ratio will liam utilize to help him with his decision?
The ratio that would help Liam to come with this decisions is what is called the leverage ratio.
What is the leverage ratio?This is the term that is used to refer to the financial measurement that is used to assess the ability of a company to get to its financial needs.
This ratio is used to check if the company is able to meet with its financial obligation or not.
It helps to measure the expenses mix of the company in such a way that they would be able to tell the changes in out put and how it affects the income that was used for operation.
Read more on leverage ratio here:
https://brainly.com/question/27244594
#SPJ1
The journal entry to close the fees earned, $115, and rent revenue, $20, accounts during the year-end closing process would involve:_________.
The closing account for Fees earned and Rent revenue is Profit or loss account.
What is Rent?Rent is the cash compensation for occupying a property of an owner for a specific period of time, the rental expense is paid by the occupier to the owner of the property.
The rent is paid monthly, semi annually or annually as per the agreed duration of time in the contract also the amount of the rent is also agreed and mentioned in the contract, the contract is a legal document and can be challenged in court of law if any party breaches the clause(s).
The fees earned and rental income is reflected in the other income head of the Profit or loss account and that is why its closing entry contains this account. The fees earned and the rental income is not reported directly in the statement of Financial position.
Learn more about Rent at https://brainly.com/question/26958257
#SPJ1
In year 1, Casa Corp. has depreciation expense for income statement purposes of $20,000. The depreciation deduction on the tax return was $30,000. The enacted tax rate is 40%. If this is the only difference between pretax income and taxable income, Casa would record a
Tax Expense- (Debit) $40,000
To Taxes Payable (Credit) $36,000
To Deferred Tax Liability (Credit) $4,000
What is the difference between deferred tax asset and deferred tax liability?
A deferred tax liability shows a future tax requirement or payment due, whereas a deferred tax asset shows a financial advantage. People who have standard 401(k) plans, for instance, can contribute to their accounts using pre-tax income.
Why is depreciation deferred tax liability?
A delayed tax liability typically arises when the government's accounting practices diverge from those of a conventional business. One frequent illustration is the depreciation of fixed assets. Companies often use a straight-line depreciation approach to disclose depreciation in their financial accounts.
Learn more about deferred tax liability: https://brainly.com/question/15394738
#SPJ4
The correct question is:
In year 1, Casa Corp. has depreciation expense for income statement purposes of $20,000. The depreciation deduction on the tax return was $30,000. The enacted tax rate is 40%. Casa's pretax income for the year was $100,000, and its taxable income was $90,000. If this is the only difference between pretax income and taxable income, the journal entry to record tax expense for the year would include which of the following entries? (Select all that apply.)
In a bus network, a single communication path connects the central server, departmental servers, workstations, and peripheral devices.
In a Bus Network, a single communication path connects the central server, departmental servers, workstations, and peripheral devices.
What is a Bus Network?In a bus network, every node is connected to a single shared bus, creating a local area network (LAN) topology. Bus networks are the simplest approach to link up several customers, however when two clients seek to transmit simultaneously on the same bus, problems can arise. Authentic bus networks are unactive. A main cable and endpoint terminals make up a bus network. The file server, workstations, and peripherals are all nodes of a local area network that are connected to the main cable (bus).Bus networks make it simple for terminals to connect to the bus. However, problems with collision handling arise when two clients submit data simultaneously on the same bus.
Therefore, In a Bus Network, a single communication path connects the central server, departmental servers, workstations, and peripheral devices.
Know more about Bus Network with the help of the given link:
https://brainly.com/question/12913771
#SPJ4
A customer persona or archetype is a generalization or caricature intended to represent:.
A customer persona or archetype is a generalization or caricature intended to represent : -
The one we would like to help , The right response is option D
What is a Customer persona and how its significant?A buyer persona is a fictionalized portrayal of the ideal client. It is based on market analysis, real customer data, and a few (informed) assumptions. It assists you in comprehending and connecting with the audience you wish to promote your goods and services to.Not only do personas allow you to design your offerings with a specific target in mind, but they also give you information to help market your services. This will ultimately translate into new customers, more sales, and higher revenuePersonas are essential to a product's success because they influence design choices by bringing common user demands to the fore of planning before design has even begun. Personas provide the team a common knowledge of the skills and goals of users.
To learn more about customer persona, click the links.
https://brainly.com/question/21472833
#SPJ4
Correct Question - A customer persona or archetype is a generalization or caricature intended to represent
a) the one who is most likely to switch from a competitor's offering.
b) the one who represents the largest market segment.
c) the one with the greatest ability to pay for a solution.
d) the one you would like to help
The innovation strategy for changing products and technologies that involves designing the organization to encourage creativity and the initiation of new ideas is known as?
The innovation strategy for changing products and technologies that involves designing the organization to encourage creativity and the initiation of new ideas is known as exploration.
Creativity is the generation of novel ideas that can satisfy a perceived need or respond to an organizational opportunity. An innovation strategy for changing products and technologies in which organizations are designed to encourage creativity and the initiation of new ideas is called exploration.
Exploration encourages creativity and the development of new ideas, and Exploitation transforms those ideas into the manufacturing of everyday products. Organizational change is defined as the adoption of new ideas and behaviors by an organization.
The adoption of ideas and behaviors that are new to an organization's industry, market, or general environment is called organizational innovation.
Learn more about exploration here: https://brainly.com/question/26167590
#SPJ4
Suppose the Fed sells $ 400 billion in government securities and the reserve ratio is 0.5 . Calculate the resulting change in the money supply. Be certain to include a negative sign. change in the money supply:
The change in money supply is $-800 billion.
What is the change in money supply?The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.
One of the monetary policy tools is open market operation. When the Fed sells government securities, it is known as an open market sells. Open market sells reduces money supply in the economy.
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. The reserve ratio is also used to control the amount of money supply in the economy.
Change in money supply = value of government securities sold / reserve ratio
$400 billion / 0.5 = 800 billion
To learn more about reserve ratio, please check: https://brainly.com/question/6831267
#SPJ1