Suppose first main street bank, second republic bank, and third fidelity bank all have zero excess reserves. the required reserv
e ratio is 10%. the federal reserve buys a government bond worth $500,000 from manuel, a client of first main street bank. he deposits the money into his checking account at first main street bank.
2 answers:
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Answer:
The answer is -0.5
Explanation:
I will attach a jpg file explaining the procedure used in obtaining the answer. I used the midpoint formula to calculate for percentage change in Quantity and Price, before calculating the Price-elasticity coefficient.
Answer:
The contribution margin ratio can be calculated using either total amounts or per unit amounts.
Explanation:
Contribution margin ratio =
This can even be done by
This will calculate contribution as a percentage of Sales, with this margin ratio we get break even sales value, and not the units.
Whenever there is an increase in variable cost it decreases the contribution.
Therefore, correct statement is
The contribution margin ratio can be calculated using either total amounts or per unit amounts.