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Author Question: Serious natural disasters like hurricanes and tornadoes cause widespread and extensive damage to ... (Read 70 times)

melly21297

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on: Jun 30, 2018
Serious natural disasters like hurricanes and tornadoes cause widespread and extensive damage to buildings. As a result of a natural disaster, what would you expect to happen in the market for building supplies?

Question 2

Say the required reserve ratio is 10 percent. If you pay back a loan of 20,000 a bank had previously made to you, the act of paying back the loan:
 a. adds 2,000 in bank reserves.
 b. adds 20,000 in bank reserves.
 c. eliminates 2,000 in bank reserves.
  d. eliminates 20,000 in bank reserves.


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sultana.d

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Reply #1 on: Jun 30, 2018
Answer to Question 1

As homes and buildings are being reconstructed, the demand for building supplies will increase significantly. The increase in demand causes a movement along the supply curve, resulting in an increased quantity of building supplies traded. Prices will rise.

Answer to Question 2

b


melly21297

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Reply 2 on: Jun 30, 2018
Excellent

smrtceo

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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