Suppose Jennifer has $42,000 in currency which she deposits in her bank. If the reserve ratio is 50 percent, this will lead to a maximum increase of ________ in M1 throughout all banks.
A. $0
B. $21,000
C. $42,000
D. $84,000
Answer: C
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Positive economic profits in a perfectly competitive market imply that:
A) producers are earning more than their opportunity cost. B) existing firms are likely to leave the market. C) the cost of production is equalized across producers. D) government intervention is required to stabilize the market.
Given the table above, the present value of lifetime resources ________ when the real interest rate rises to five percent
A) falls by $367 B) rises by $200 C) rises by $300 D) falls by $275
Discouraged workers are included in the
A. labor force category. B. unemployed category. C. not in the labor force category. D. employed category.
What happens when a country runs a current account deficit?
What will be an ideal response?