Answer: This is shoe-leather costs is the time and exertion individuals produce to limit the results of expansion on the disintegrating buying influence of cash. Individuals destroy their shoes in transit forward and backward to the bank, in a manner of speaking, attempting to ensure the estimation of their advantages. However, sometimes it takes a longer time to reimburse him (quite often in reality!). When inflation is expected to be high, ...Read More >>
Answer: I disagree with the statement mentioned above because the current statistics of Australian Bureau indicate that the revenue of the government by September 4, 2018, exceeded the expenses by around $17,525 million. Therefore, it is false to say that Australia is less than half as wealthy as the government statistics. In addition, the statistics also indicate an average earning of $1,586.20 every week in Australia. To indicate that the stat...Read More >>
Answer: Consider an economy in which initially there are no banks. Suppose that one consumer initially holds the entire money supply in the form of $1,000 in currency. Then assume a new bank is opened, The First National Bank, and the consumer deposits the entire $1,000 into the bank. Based on this scenario answer the following questions Assuming that the First National Bank has a 100% reserve ratio, use a T account to show what e...Read More >>
Answer: Consider a closed economy in which GDP equals $20 billion, consumption equals $13 billion, government purchases equal $3 billon and tax revenue equals $1 billion. Use this information to answer the following questions: Private savings is termed as the savings done by the private people residing within the economy after using their income for all essential and necessary activities (Larbi 2013). Private savings= Y-T-C Where,...Read More >>
Answers: Consider a closed economy in which GDP equals $20 billion, consumption equals $13 billion, government purchases equal $3 billon and tax revenue equals $1 billion. Use this information to answer the following questions: What is private savings equal to in this economy? What is public savings equal to in this economy? How would the level of public savings impact the supply of loanable funds? What is national saving equal to in this ...Read More >>
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