Suppose the money multiplier in the united states is 3. suppose further that if the fed changes the discount rate by 1 percentage point, banks initially change their reserves by 400. to reduce the money supply by 4,200 the fed should:

increase the discount rate by 3.5% points

Explanation:

Since the money multiplier is 3, a 1% increase in the discount rate will decrease the money supply by: $400 x 3 = $1,200

If the Fed wants to lower the money supply by $4,200, it should increase the discount rate by: $4,200 / $1,200 = 3.5 points

answer; i believe that the correct answer is (d); the business benefits because owners can share responsibilities;

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o