Refer to the information provided in Scenario 25.2 below to answer the question(s) that follow.SCENARIO 25.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
Refer to Scenario 25.2. How much money will be created based on the initial $100,000 deposit?
A. $1 million
B. $2 million
C. $16.67 million
D. $50 million
Answer: A
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A firm that is a natural monopoly
A) can supply the entire market at a lower average total cost than two or more firms. B) has very small fixed costs and very large marginal costs. C) is infrequently regulated because having one firm serve the market is economically sound. D) cannot make an economic profit if it is not regulated because it must serve a very large customer base. E) produces the efficient quantity of output when it is not regulated.
A chief reason firms give employees bonuses based on the firm's profit is to cope with
A) the tax laws. B) the law of diminishing returns. C) the principal-agent problem. D) unions.
Which of the following statements is true?
a. The Phillips curve has always been stable. b. If the Phillips curve shifts outward to the right this illustrates a greater tradeoff between unemployment and inflation. c. Keynesian economics assumes a vertical Phillips curve. d. According to the natural rate hypothesis the Phillips curve is downward sloping. e. All of these.
About _____ percent of the money the government has been paying in farm subsidies has been going to large corporate farms.
Fill in the blank(s) with the appropriate word(s).