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You are considering whether to buy or make a software product. If you buy, the cost is $ 80,000 and the cost of procurement and integrating in your company is $ 1000 If you want to build yourself, the product will require 7 software engineers working 3 months. Salary of each software engineer is $ 4,000 per month. The overhead costs apportioned to the project will be $ 2,000.Which option will you choose?
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B. $1,000,000
C. $800,000
Answer: A
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The deposit expansion multiplier is 1 / 0.2 = 5 (if a = 0). The money supply will increase by
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