If the reserve ratio is 5 percent, then $1,000 of additional reserves can create up to
a. $5,500 of new money.
b. $5,000 of new money.
c. $4,000 of new money.
d. None of the above is correct.
d
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Explain the relationship between the incidence of a tax and elasticity
What will be an ideal response?
Which of the following is true about the distribution of income in the U.S. in the last three decades?
A) For much of this period real wages paid to college graduates have risen significantly. B) Real wages paid to blue-collar workers have grown only slightly. C) There has been a shift in the distribution in income across various segments of the economy, with the real earnings of the richest in America rising to record levels. D) All of the above are true.
The legislation that effectively prohibited banks from branching across state lines and forced all national banks to conform to the branching regulations in the state in which they reside is the
A) McFadden Act. B) National Bank Act. C) Glass-Steagall Act. D) Garn-St.Germain Act.
Explain how the market can reduce the incentive for credit-rating firms to take advantage of conflicts of interest
What will be an ideal response?