Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 deposit, then the maximum value of the loans it makes is
a. $0
b. $90
c. $100
d. $900
e. $910
D
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Kisa consumes the same amount of cigarettes each week regardless of her income (assume that her income is sufficiently large such that the quantity is affordable). The Equivalent Variation equals the Compensating Variation
Indicate whether the statement is true or false
Resources are used to create goods and services
a. True b. False Indicate whether the statement is true or false
Economists believe that the optimal level of pollution is zero
a. True b. False Indicate whether the statement is true or false
The action time lag is the time period that elapses
A. between when an economic problem manifests itself and it is officially acknowledged. B. between the recognition of an economic problem and implementing policies to solve it. C. between implementing policies to solve an economic problem and when the results of that policy can be measured. D. between the beginning of the budgetary process and the final budget resolution.