Silver Mountain Bank makes a loan of $35,000 to Klaus, who pays his contractor, Yasmin. Yasmin deposits the $35,000 into her account at Clearlake Bank. Clearlake then uses all the resulting excess reserves to make a loan to Miguel, who deposits it into his own bank account. Assuming the required reserve ratio for all the banks is 15 percent, how much money has been created as a result of these transactions?
a. $64,750
b. $29,750
c. $35,000
d. $5,250
a. $64,750
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Changes in tax laws in 1993
A) reduced Federal revenues by making the tax code more regressive. B) reduced Federal revenues by making the tax code more progressive. C) increased Federal revenues by making the tax code more regressive. D) increased Federal revenues by making the tax code more progressive.
The business cycle consists of four phases. At the top we have:
a. expansion, followed by peak, and then recession followed by a recession. b. expansion, followed by a recession, and then peak followed by recession. c. peak, then an upturn followed by a recession, and then recession. d. peak, then a recession followed by expansion, and then recession. e. peak, then a recession followed by recession, and finally, expansion.
Virtual currency unit 2 (VCU2) is different from VCU1 because:
a. VCU1 cannot be spent in the real world; VCU2 can be spent in the real world. b. VCU1 can only be purchased with real-word currencies. VCU2 can be purchased with real-world currencies and also earned in the virtual world. c. VCU1 can only be earned in the virtual world; VCU2 can be earned in the virtual world or purchased with legal tender. d. In terms of spending potential, there is no difference; both VCU1 and VCU2 can be spent in the real world.
Economists sometimes give conflicting advice because
a. graduate students in economics are encouraged to argue with each other. b. economists have different values and scientific judgment. c. economists acting as scientists do not like to agree with economists acting as policy advisers. d. economics is more of a belief system than a science.