The banking system receives a new cash deposit of $250,000. Total deposits eventually rise by $1 million. The value of the reserve ratio is
A. 25
B. 4
C. 0.50.
D. 0.25.
E. 0.20.
Answer: D
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The present value of $100 to be received in the year 2014 is
A) less than the present value of $100 to be received in 2015. B) greater than the present value of $100 to be received in 2015. C) the same as the present value of $100 to be received in 2015. D) greater than the present value of $100 to be received in 2015 if the interest rate in 2015 exceeds the interest rate in 2014; otherwise, it is less.
The aggregate demand curve shows the relationship between the ________ and ________
A) price level; quantity of real GDP demanded B) real interest rate: quantity of real GDP supplied C) nominal interest rate; quantity of real GDP demanded D) inflation rate; quantity of real GDP demanded
If the actual market price were fixed at $15 per unit in Figure 3.2,
Figure 3.2 Supply and DemandÂ
A. There would be a shortage of 40 units. B. There would be a shortage of 20 units. C. There would be a surplus of 20 units. D. There would be a surplus of 40 units.
Hourly wages in Mexico are ____________ those paid in the United States for comparable work.
A. equal to B. one half C. one quarter D. one eighth