Say the required reserve ratio is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of paying back the loan:
a. adds $2,000 in bank reserves
b. adds $10,000 in bank reserves.
c. eliminates $2,000 in bank reserves.
d. eliminates $10,000 in bank reserves.
b
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Infrastructure investment appears to have little impact on economic growth and development
a. True b. False Indicate whether the statement is true or false
If a country had a real GDP of $500 million, and the GDP Ddeflator was 90, what is the nominal GDP?
a. $440 million b. $540 million c. $450 million d. $550 billion
Why do airlines often charge students and vacationers a lower price than business travelers?
a. It is cheaper to provide airline service to students and vacationers than to business travelers. b. The demand of business travelers is generally more elastic than the demand of students and vacationers. c. The demand of students and vacationers is generally more elastic than the demand of business travelers. d. Airlines prefer to deal with students and vacationers rather than business travelers.
The usefulness of money in carry out transactions is its ________ and the nominal interest rate is its ________.
A. benefit; cost B. demand; supply C. supply; demand D. cost; benefit