If the required reserve ratio in an economy is equal to 10 percent and Bank A receives $100,000 as deposits, then Bank A would _____ in order to make profits
a. keep $90,000 in reserves and loan out $10,000
b. keep $10,000 in reserves and loan out $90,000
c. keep the entire amount in reserves and charge a high fee on withdrawal
d. loan out the entire amount at the prevailing rate of interest
b
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If two goods are ________, then an increase in the price of one leads to ________ in the quantity demanded of the other
A) complements; a decrease B) complements; no change C) substitutes; a decrease D) substitutes; no change E) normal; an increase
Based on the figure above, the price of a can is $8; if the price increased to $12, then the firm would
A) produce zero cans. B) decrease the amount of cans produces it but not to zero. C) not change the amount of cans it produces. D) increase the amount of cans it produces. E) More information is needed to determine what action the firm will take.
The gold standard ended in the 1970s because the gold supplies failed to keep pace with the increase in money supplies required for industrialization and rapid economic growth witnessed in this era
a. True b. False Indicate whether the statement is true or false
The supply of loanable funds curve
a. is upward sloping b. is downward sloping c. is horizontal d. begins sloping upward, then levels off e. may slope either upward or downward, depending upon the interest rate