Answer the question based on the following information on the banking system. Deposits at the central bank = 200 U.S. Government Securities = 600 Checking Deposit = 1,700 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 230 Borrowing from the central bank = 100 Cash in the Vault = 50 The reserve ratio on checking accounts = 10% The monetary base:
a. cannot be determined from this information
b. equals $250
c. equals $134
d. equals $2,100
e. none of the above
.A
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In the country of Konswano there are 4 people. Each person lives for 40 years. In their first 10 years, they earn no income. In the next 20 years, they earn $40,000 per year and in the last 10 years they earn no income
Each year their consumption is $20,000. If everyone in Konswano is 25 years old, then the Lorenz curve for income is ________. A) above the Lorenz curve for wealth B) above the line of equality C) equal to the line of equality D) below the Lorenz curve for wealth
Refer to Figure 10-1. Which of the following is consistent with the graph depicted above?
A) Technological change increases the profitability of new investment. B) Households become spendthrifts and begin to save less. C) An expected recession decreases the profitability of new investment. D) The government runs a budget surplus.
A British investor buys $40,000 worth of stocks in the U.S. stock market. For the U.S. we can predict ________.
A. if the capital account is unchanged, the current account must decrease in value B. there will be no effect on either the current account or the capital account C. the sum of the current account and the capital account must increase D. if the current account is unchanged, the capital account must increase in value
Long-run elasticity of supply is defined as:
a. percentage change in quantity demanded in the long run divided by percentage change in price. b. percentage change in price divided by percentage change in quantity demanded in the long run. c. percentage change in quantity supplied in the long run divided by percentage change in price. d. percentage change in price divided by percentage change in quantity demanded in the long run.