Oksana deposits $90,000 at Flynn Bank. Flynn Bank has a required reserve ratio of 15 percent. How much money could Oksana’s deposit potentially create?
a. $76,500
b. $90,000
c. $600,000
d. $13,500
c. $600,000
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In an agreement to exchange dollars for euros in three months at a price of $0.90 per euro, the price is the
A) spot exchange rate. B) money exchange rate. C) forward exchange rate. D) fixed exchange rate.
A monopolist maximizes profits by finding
A) the rate of output where marginal revenue equals marginal cost. B) the rate of output where price equals marginal cost. C) the price where price exceeds marginal revenue by that largest amount. D) the price where average revenue and marginal cost are equal.
Nobel-laureate economist Milton Friedman suggested that policymakers strive to ensure that the monetary aggregates:
A. grow at a rate equal to the rate of real growth plus the desired level of inflation. B. remain constant in terms of dollar amounts. C. grow at a rate equal to the rate of real growth less the desired level of inflation. D. grow at a rate equal to the rate of inflation.
Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. Q Pa Pb 1 $3 $5 2 2 4 3 1 3 4 0 2 5 0 1 If the marginal cost of producing this good at the optimal quantity is $4, the optimal quantity must be
A. 3 units. B. 2 units. C. 4 units. D. 1 unit.