City Bank has $5 million in deposits, $600,000 in cash on hand, and no funds on reserve with the Fed. With a required reserve ratio of 10 percent, City Bank has ______ available to lend to borrowers.
a. $600,000
b. $100,000
c. $500,000
d. $4,500,000
b. $100,000
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Which of the following will increase the demand for large automobiles?
a. A fall in the price of small automobiles. b. A rise in insurance rates for large automobiles. c. A fall in the price of large automobiles. d. A rise in buyers' incomes (assuming large automobiles to be a normal good).
Aggregate demand is the total demand for
a. all intermediate and final goods. b. all monetary investments. c. real and financial investments. d. all final goods and services.
Factor markets for chocolate bars are influenced by the
a. demand for chocolate bars. b. marginal productivities of labor and capital. c. market prices for final goods and services. d. All of the above are correct.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.