A bank receives a demand deposit of $2,000 . The bank loans out $1,200 of this deposit and increases its excess reserves by $600 . What is the required reserve ratio?
a. 10%
b. 30%
c. 40%
d. 60%
a
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What are the two largest sources of tax revenues for the U.S. federal government?
What will be an ideal response?
The above figure shows the labor market in an undeveloped nation. If the minimum wage is set at $5.00 per hour, what effect will it have on the market for low-skilled labor?
A) The minimum wage will have no effect when set above the equilibrium wage rate. B) The minimum wage will create a surplus of low-skilled labor. C) The minimum wage will create a shortage of low-skilled labor. D) The minimum wage will attract more labor to the low-skilled labor market and cause the wage rate to fall.
Even today, individuals distrust the outcome of free markets, as is evidenced by the protests against the construction of Walmarts across the nation
Indicate whether the statement is true or false
Which of the following threatens the future of the U.S. economy?
(a) A strengthening of private property rights (b) Effectively preventing some individuals and organizations from pursuing noncompetitive market legislation (c) Racism, discrimination and sexism (d) Increased private consumption and investment and reduced government expenditures