Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and checkable deposits are the only form of money. A commercial bank receiving a new checkable deposit of $100 would be able to extend new loans in the amount of:
a. $10.
b. $90.
c. $100.
d. $1,000.
b
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The long-run aggregate supply curve is vertical
Indicate whether the statement is true or false
Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. What are Tom's economic profits?
A. $35,000 B. $50,000 C. $24,000 D. $6,000
Some economists believe that our best years of economic growth are behind us
a. True b. False Indicate whether the statement is true or false
Which of the following statement(s) is (are) false?
A) The number of U.S. farms at present is about 2 million. B) At present, most U.S. farms are organized as partnerships and corporations. C) The average size of U.S. farms is between 800 and 1,000 acres. D) Both B and C.