Fred Jones withdraws $1,000$1,000 in cash from his savings account. What immediate effect does this transaction have on the monetary aggregate measures of M1M1 and M2M2 ?

Answers

Answer 1

The withdrawal of $1,000 in cash will lead to increase in the money supply, which results in increase in M1 money and decrease in M2 money.

What is M1 and M2 money in economics?

The M1 includes money in circulation and checkable bank deposits. The M2 includes a M1 savings deposit (under $ 100,000) as well as money market funds.

The immediate effect this transaction have on the monetary aggregate measures of M1M1 and M2M2 is that there will be increase in money supply in the economy which will increase the M1 money.

On the other hand, it will decrease the money in the savings accounts. leading to reduction of M2 money by the same amount.

Thus,The withdrawal of $1,000 in cash will lead to increase in the money supply, which results in increase in M1 money and decrease in M2 money.

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Related Questions

The board of directors had an important role in Luckin Coffee, but it claimed to be unaware of any problems. If true, this is an example of

Answers

If it was found that the Board of Directors for Luckin Coffee were truly unaware of any problems then this is an example of Information Asymmetry.

What would the Board of Directors be unaware of problems?

The Board of Directors are meant to be the oversight body that makes sure that the management of a company are acting in the interest of shareholders.

Sadly, they aren't involved in the day-to-day running of the business so won't possess the same information that management does.

This information assymetry means that they might be unaware of when certain things go wrong as was the case with Luckin Coffee.

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During a depression or recession, which of the following is most likely to
happen to interest rates?
A. Interest rates will likely rise as the Federal Reserve board
decreases inflation rates.
B. Interest rates will likely decrease as the Federal Reserve Board
increases inflation rates.
C. The Federal Reserve Board will likely lower interest rates.
D. The Federal Reserve Board will likely raise interest rates.

Answers

The Federal Reserve will more than likely decrease interest rates to encourage spending. When interest rates are low, individuals wish to spend money as it costs less for them to borrow. This increases economic activity to get themselves out of a depression/recession.

A federal budget deficit occurs when _____ Group of answer choices aggregate supply is greater than aggregate demand. aggregate demand is greater than aggregate supply. there is deflation. federal government purchases exceed net taxes. there is inflation.

Answers

A federal budget deficit occurs when federal government purchases exceed net taxes. Option C is correct.

What is federal budget?

The federal budget is the budget of the United States. It comprises the federal government's spending and revenues.

The budget is the monetary or medium of exchange expression of the  priorities of the government and showing the past conflicts and conflicting economic views.

A federal budget deficit occurs when government spending exceeds revenue, which is the money collected from, fees, taxes and investments. Deficits add to the national debt, or debt owed by the federal government.

Therefore, option C is correct.

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A bond that pays interest semiannually has a price of $958.56 and a semiannual coupon payment of $29.50. If the par value is $1,000, what is the current yield

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The current Yield on the  price of $958.56 and a semiannual coupon payment of $29.50. If the par value is $1,000 is 6.16%.

What is current Yield?

Current Yield is defined as the rate of return that is yielded by a bond on its actual price, without share for the information that it will be pay off at par at maturity date.

The formula of the Current Yield is:

[tex]\text{Current Yield}= \dfrac{\text{Annual Coupon Payment}}{\text{Price Of Bond}}}[/tex]

According to the given information,

Price = $958.56

Coupon Payment = $29.50

Per Value = $1000

Current Yield = ?

Annual Coupon Payment:

[tex]\text{Annual Coupon Payment} = \text{Semi-Annual Coupon Payment} \times 2\\\\\text{Annual Coupon Payment} =\$29.50 \times 2\\\\\text{Annual Coupon Payment} = \$59[/tex]

Then apply the given values in the above formula, to get the current Yield:

[tex]\text{Current Yield}= \dfrac{\text{Annual Coupon Payment}}{\text{Price Of Bond}}\\\\\text{Current Yield}= \frac{59}{958.56}\\\\\text{Current Yield}= 0.06155\\\\[/tex]

Then the current Yield rate is:

[tex]=\dfrac{0.06155 }{14000}\\\\ =6.16\%[/tex]

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If an agent permits an unlicensed employee to perform acts for which a license is required, the agent is subject to having his/her license:
A. Denied
B. Suspended or revoked
C. Withheld
D. Decertified

Answers

i think the correct answer is B

Of the following items, which one or ones describe items beneficial to your credit score? choose all that apply. low debt amount low debt amount short credit history length short credit history length multiple lines of credit multiple lines of credit payments are made on time

Answers

The statement that is beneficial to credit score is multiple lines of credit payments are made on time

What is Credit Score?

In simply terms credit score is a record of history of how actively an inddividual services their debt or loan.

A positive credit score is advantageous in that financial institution are confident when given such a person loan

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Unlike the United States, most countries across the globe rely on the ________ system to measure units, creating problems for both buyers and sellers in the international marketplace

Answers

Answer:

metric

Explanation:

Unlike the United States, most countries across the globe rely on the metric system to measure units, creating problems for both buyers and sellers in the international marketplace.

The United States uses the imperial system, also known as the U.S. Customary System.

For example, to measure length, the imperial system uses units such as inches, feet, yards, and miles. On the other hand, the metric system uses units such as millimeters, centimeters, meters, kilometers, etc.

Investing activities include (a) the purchase and sale of long-term assets, (b) the purchase and sale of investments, and (c) lending and collecting money for notes receivable.

Answers

Investing activities include the purchase and sale of long-term assets and the purchase and sale of investments.

What do you mean by investing activities?

Investing activities are one of the main sections in the cash flow statement that provides information regarding receiving cash or spending on investment-related activities for a particular period.

Investment activities include the purchasing of physical assets, investments in securities, or the sale of assets or securities.

Therefore, A and B are the correct option.

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According to the cartoon, what actions of Standard Oil earned it the label "The Monopoly Monster"?

Answers

The action that made Standard Oil earned the label monopoly monster is that they control and owned about 90 percent of US oil.

What is Monopoly?

Monopoly can be defined as a situation whereby a manufacturers owns and control virtually 100% market shares.

In summary, monopoly does not allow for healthy market competition.

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Other things being equal, an increase in the rate of interest causes a(n): a. rightward shift of the demand for money curve. b. leftward shift of the demand for money curve. c. downward movement along the demand for money curve. d. upward movement along the demand for money curve.

Answers

Other things being equal, an increase in the rate of interest causes an upward movement along with the demand for money curve.

What is Demand curve?

In economics, a demand curve is a graph that shows the relationship between the price of a commodity and the value of that asset in that price.

Interest rates reflect borrowing costs to finance investment projects. Other things being equal, as interest rates rise, it becomes more expensive to fund investment projects.

Thus, the correct option is d. upward movement along with the demand for money curve.

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A big project budgeted at $20 million is running over budget by $1 million and behind schedule by four months at the 50% stage of the project. Who has the primary responsibility to solve the problem

Answers

The person with the primary responsibility to solve the budget overrun and behind-schedule performance is b: The Project Manager.

Who is a Project Manager?

A project manager is a professional who organizes, plans, and executes projects under tight budgets and schedules.

The roles of the project manager include:

Planning and defining goalsOrganizing and leading teamsDirecting projectsCommunicating with stakeholdersEnsuring timely delivery of projects, on budget, and within scope.

Answer Options:

a: The Project Champion

b: The Project Manager

c: The Project Management Office Manager

d: Senior Management

Thus, the person with the primary responsibility to solve the budget overrun and behind-schedule performance is b: The Project Manager.

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When the activity level changes, ______. Multiple select question. total variable cost changes variable cost per unit changes total variable cost remains constant variable per unit remains constant

Answers

When there is a change in activity level, then:

Total variable cost changes.Variable per unit remains constant.

What happens when activity level changes?

As a result of the change in activity level, the variable cost will change in total because it increases when there is an increase in number of units produced.

The unit variable cost will however remain the same as the company incurs the same variable cost per unit produced.

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On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31

Answers

An insurance expense amounting to around $6000 would be shown in the company's balance sheet, at the end of the year on December 31.

What is insurance expense?

Insurance expense refers to as an expense borne by the insured for the purpose of securing a cover against the happening of the event against which such policy has been taken.

In the given example, the insurance policy has been taken for two years for an amount of $18000 on May 1. The financial year ends on December 31. The computation for insurance expense in this year will be;

[tex]\rm Insurance\ Expense= Monthly\ Expense\ x\ No.\ of\ Months\\\\\rm Insurance\ Expense= \dfrac{\$ 18000}{24} x\ 8\\\\\rm Insurance\ Expense= \$750\ x\ 8[/tex]

Calculating further, the insurance expense for the year is calculated as $6000.

Hence, it can be stated that the insurance expense for a policy purchased on May 1 will be $6000 as on December 31.

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__________ is a narrative presentation analyzing the internal and external environment of an organization and its publics as it relates to the start of a campaign or program.

Answers

Answer:

situation analysis

Explanation:

Hope my answer helped :)

The first Pepsi yields Craig 18 units of utility and the second yield him an additional 12 units of utility. His total utility from three Pepsis is 38 units of utility. The marginal utility of the third Pepsi is Group of answer choices

Answers

Answer:

the moon has an orbital period of 63.3 days. Calculate the average distance from the earth

Explanation:

calculate the escape velocity of a rocket fired from the earth surface, take (R=6400km)

The demand curve intersects the natural monopolist's long-run average total cost curve at a point where long-run average total costs are still falling, due to ______.

Answers

The demand curve intersects the natural monopolist's long-run average total cost curve at a point where long-run average total costs are still falling, due to economies of scale.

What are economies of scale?

Economies of scale are the advantage of the cost that the enterprise gets due to the operation's scale.

The simple meaning of economies of scale is to get more profit by doing simple things, such as buying in bulk, etc.

Scale can be increased by lowering the cost per unit of output.

Thus, the correct fill the blank is economies of scale.

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Discuss several techniques for managing stress in your life.

Answers

Chill and do stuff that you like it can take your mind off of the things your stressing about.

Organizational _____ is considered the adoption of a new idea or behavior by an organization. Group of answer choices environment innovation change behavior

Answers

When a new idea or behavior is adopted by an organization, this is considered Organizational change.

What is organizational change?

This refers to when an organization decides to adopt a new way of operation based on new ideas.

This is often necessitated by the need to become more competitive in the industry in the face of gains in market share by rivals.

In conclusion, option C is correct.

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After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs. This is called a(n) _____ decision.

Answers

The decision for manufacturing a product or buying a product from the market is called as make or buy decision.

What is make or buy decision?

When the companies has product speicifications and for various products company needs to take financial decisions is known as make or buy decision.

Under this decision process if the company is incurring less cost in making the parts of the product within the company as compared to buying the product from the market. Then the company will take make decision instead of buy decision.

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The theory of purchasing power parity assumes that.

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PPP is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

What is purchasing power parity?

Purchasing power parity (PPP) is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

It uses the prices of specific goods to compare the absolute purchasing power of currencies and, to some extent, the living standards of their people.

Therefore the above statement explains the purchasing power parity.

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Lower-level management goals that are inconsistent with company goals are a possible disadvantage of

Answers

When the goals of lower management are inconsistent with company goals, this is usually a disadvantage with decentralization.

What is decentralization?

This is when a company allows for more independence in lower divisions and their managers.

This means that the lower level managers have more say in how things are done. This can be disadvantageous when these managers decided to go against company goals to further goals that they support.

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Please read instructions all the way through, brainiest will be given and 50 pts. Explain the logistics of product delivery. Describe the ins-and-outs of importing and exporting your products. What are the most critical components of delivery and importing/exporting? (i know for a fact that you have to do research on latest distribution trends and i can give you a link to a possibly helpful website if you need, i mainly need pointers for starting off and maybe a little bit of guidance in creating a 2 page response)

Answers

Answer:

The logistics of product delivery could be described as all that's entailed in ensuring a goods or product gets to a customer's destination after it has been purchased from a particular destination.

Explanation:

The logistics of product delivery could be described as all that's entailed in ensuring a goods or product gets to a customer's destination after it has been purchased from a particular destination. It might include shipment or freight if the goods is coming from outside the desired clients location.

Ins-and-outs of importation;

- You'd have to decide the country you're buying from

- The next is to search for suppliers, those who sell the item in that particular country you've searched.

- You'll then need to search what their duty and taxes are, which you'd have to consider in the cost

- Finally, you'll need to find a reliable freight forwarder and customs broker who would handle the clearing of the goods when they get to your country.

Export has the same but there some changes as this time you'd have searched those who need your product and considered all that's needed to ship in your country and how it'll be cleared over your customers destination

am kandy but pls don't friends me...thank me or comment on this q anymore cz this is my school acc.

Select the correct answer.
What economic concept is applied in this statement?
By earning higher levels of education, students learn skills and are more likely to be employed. In their jobs, they use their skills to provide goods
and services to others.

Answers

The economic concept that is applied in the statement is D. positive externality.

What is a positive externality?

Positive externality refers to the production and consumption of a good or service that benefits some other third parties, who are not directly involved in the transaction.

Some examples of activities that create positive externality include:

EducationVaccinationLocal investmentsBuilding of infrastructure.

Thus, the economic concept that is applied in the statement is D. positive externality.

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Interest rates are generally expressed as a(n) of the loan. the length of time before a loan must be repaid is called the of the loan. loans that are considered to be high risk typically have a interest rate.

Answers

Interest rates are expressed as a percentage of the loan, the length of time before a loan must be repaid is called loan term, high risk loan typically have a high interest rate.

What is a Loan?

Simply put, a loan is a debt, it can also be defined as a certain amount of money an individual collect with the intention of repayment at an agreed date.

A loan repayment come with an interest rate.

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Answer:

Interest rates are generally expressed as a(n)

✔ percentage

of the loan.

The length of time before a loan must be repaid is called the

✔ term

of the loan.

Loans that are considered to be high risk typically have a

✔ high

interest rate.

Explanation:

As we near the end of the development stage for SIM, I have implementation questions. How do you plan on rolling out the new SIM system

Answers

While rolling out a new sim, enough consideration need to be old customer's confidential data that is saved in the old SIM data while purchasing his/her new SIM.

What is a development stage?

In a business, this stage is the initial stage in the life cycle of a new business.

Here, the business will focus on establishing itsself from market research, product development etc.

In conclusion, the abillity of a firm to perform its duties in the development stage will determines its success when its product is launched into the market.

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After a hurricane devastates New Orleans, a Canadian charity sends $1 million to the U.S. to help the survivors rebuild their homes. In the U.S. balance of payments, this transaction would cause the balance on the _____ account to _____

Answers

In the U.S. balance of payments, this transaction would cause the balance on the current account to increase.

What is a current account?

This is a deposit account from which withdrawals are done in the bank through the use of checks.

It is also called a checking account. It helps to take care of frequent deposits as well as withdrawals that are done by cheque.

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On a bank's balance sheet, the value of its assets must equal the value of its _____ Group of answer choices net worth only. its revenues plus costs. liabilities only. its liabilities plus net worth. its revenues minus costs.

Answers

On a bank's balance sheet, the value of its assets must equal the value of its liabilities plus net worth.

What can the asset be determined?

A balance sheet is a financial statement that reports a company's assets, liabilities and net worth at a point in time.

According to the accounting equation: assets = liabilties + net worth

Net worth is total assets less liabilities. Assets are items owned by a person that creates future benefits. Liabilities are what are owed to another person.

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It would be common to use the term ____ to refer to the manufacturing process when discussing the global supply chain.

Answers

Production refers to the manufacturing process that includes the transformation of raw materials resulting in finished products.

What is production?

It is the supply chain phase that includes all the processes related to the creation and elaboration of the product.

That is, it includes the operations necessary for the transformation of raw materials into products and their mass production.

Therefore, we can conclude that production refers to the manufacturing process that includes the transformation of raw materials resulting in finished products.

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Australia's Health Insurance Commission processes 300 million health claims and makes annual payments of $8 billion of payments to clients. The company would store all of its more than three gigabytes of information in a(n) _____ to support management decision making.

Answers

The insurance company would store all its information in a data warehouse to support management decision making.

What is a data warehouse?

This means the large store of data that was accumulated from a wide range of sources within a firm and are used to guide the management decisions.

Therefore, the data warehouse is the facility that will store tha data for future use and to support management decision making.

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The unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals:

Answers

Based on the number of people that are employed and those who are unemployed in this town, the unemployment rate is 14.4%.

What is the unemployment rate?

The unemployment rate can be found by the formula:
= Employed people / (Unemployed + Employed people)

Solving gives:

= (11,000) / (65,400 + 11,000)

= 11,000 / 76,400

= 14.4%

In conclusion, the rate is 14.4%.

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