Suppose a bank has $1 million in deposits, a reserve ratio of 25 percent, and reserves of $250,000. This bank has excess reserves of
A) $250,000. B) $125,000. C) $62,500. D) $0.
D
You might also like to view...
Which of the following factors will lead to a shift in the demand curve?
A) changes in the costs of inputs B) changes in technology C) changes in the price of the good D) changes in consumers' tastes and preferences
A default rule:
A. is a consequence that users of commitment devices agree to if they fail to follow through with their commitment. B. defines what will automatically occur if someone fails to make an active decision otherwise. C. is a defined limit used to mark when someone is decidedly not making a good decision. D. is the defined strength of a given commitment needed to get an individual to follow through with the commitment.
Given the consumption function C = $100 billion + 0.75 ($300 billion), autonomous consumption is equal to:
a. $100 billion. b. $225 billion. c. $300 billion. d. $325 billion. e. $400 billion.
When a tax is levied on buyers of a good,
a. government collects too little revenue to justify the tax if the equilibrium quantity of the good decreases as a result of the tax. b. there is an increase in the quantity of the good supplied. c. a wedge is placed between the price buyers pay and the price sellers effectively receive. d. the effective price to buyers decreases because the demand curve shifts leftward.