D Question 6
1 pts
If Jack deposits $500 and the reserve ratio is 10% what will result in the long term?
$550 in money creation
O $5000 in money destruction
O $500 in money creation
$50 in money creation
$5000 in money creation
1 pts
Question 7

$5,000 in money creation

Explanation:

The money that is created as a result of a new deposit in the financial system can be calculated by using the money multiplier. If this process is to be completed it would take a long time hence making it long term.

The money multiplier is calculated as;

= 1 / Reserve ratio

= 1/ 10%

= 10

The total money created by the deposit is;

= Money multiplier * deposit

= 10 * 500

= $5,000

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; /// egg production using the factory technique falls less than with the free range technique;