This topic contains a solution. Click here to go to the answer

Author Question: Economic profits differ from accounting profits because ________. A) the former is calculated by ... (Read 153 times)

fox

  • Hero Member
  • *****
  • Posts: 540
Economic profits differ from accounting profits because ________.
 
  A) the former is calculated by economists and the latter by accountants
  B) many firms own their own capital so accounting profits do not factor this cost
  C) most firms report economic profits once a year and accounting profits every pay period
  D) all of the above
  E) none of the above

Question 2

Suppose the required reserve ratio is 10, excess-to-deposit ratio is 10, and the currency-to-deposit ratio is 20. If the Fed buys 50 million worth of securities, what will happen to the money supply?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Sophiapenny

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

B

Answer to Question 2

The money multiplier is (1 + 0.2 )/(0.2 + 0.1 + 0.1 ) = 3. The money supply will increase by 3  50 million = 150 million.





 

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

For a complete list of videos, visit our video library