Suppose a bank has $600,000 in deposits, a required reserve ratio of 5 percent, and bank reserves of $90,000. Then the bank can make new loans in the amount of
A. $60,000.
B. $5,400.
C. $90,000.
D. $30,000.
Answer: A
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In the above figure, what is the marginal cost of the 8th pizza?
A) $1.50 B) $12 C) $6 D) $96 E) 8 pizzas
Some people attribute the rapid growth of the East Asian economies in the 1980s and 1990s to the:
A. success of their "industrial policies." B. governments picking industries to support with investments and favorable tax and trade policies. C. governments planning for growth by investing in certain industries. D. All of these are true.
The law of comparative advantage applies to exchange between
a. individuals. b. regions. c. nations. d. all of the above.
When the economy is producing Real GDP at the level at which the LRAS curve intersects the AD curve the economy is
A) in a recessionary gap. B) in long-run equilibrium. C) in an inflationary gap. D) operating at less than full-employment output.