Suppose Diego deposits $4,000 in his bank. If the reserve ratio is 10 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks.
A. $0
B. $4,000
C. $10,000
D. $40,000
Answer: D
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A country reports exports minus imports of $300 billion, net interest income of $30 billion, net transfers of $50 billion, and no change in official reserves. The country is a
A) net liability. B) net borrower. C) net lender. D) debtor nation. E) net asset.
A legal claim to a percentage of a company's future profits and assets is known as a
A) share of stock. B) bond. C) dividend. D) random walk.
The demand for steak is _______________________ than is the demand for food because _____________________.
A. less price elastic; the scope of the market for steak is more broadly defined B. more price elastic; the scope of the market for steak is more broadly defined C. less price elastic; the scope of the market for steak is less broadly defined D. more price elastic; the scope of the market for steak is less broadly defined
Which type of statement - positive or negative - can be evaluated by analyzing data alone?