A bank currently has checkable deposits of $100,000, reserves of $30,000, and loans of $70,000. If the required reserve ratio is lowered from 20% to 15%, this bank can increase its loans by
A. $10,000.
B. $15,000.
C. $75,000.
D. $5,000.
e. $ 0.
$15,000
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Answer the following statement(s) true (T) or false (F)
1. Although a sales tax hurts both producers and consumers, their losses are fully offset by the benefits created by the tax revenues. 2. One effect of a tax is that output in the market which is taxed falls. 3. Even if total surplus is maximized, there is still a chance that there will be a deadweight loss. 4. When the Pareto criterion is used to choose between different policies, any recommendation requires unanimous agreement. 5. If the potential Pareto criterion rejects a policy change, then the efficiency criterion will reject it as well.
Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?
A) the value of the house in 2016 B) the value of the house in 2016 minus depreciation C) the value of the services of the real estate agent D) the value of the house in 2003
Refer to the above figure. Which panel is consistent with the Laffer curve?
A. Panel A B. Panel B C. Panel C D. Panel D
If a producer were forced to absorb the cost of a spillover from the production of a good, this would likely cause the supply curve for the good to
A) shift out. B) shift to the left. C) shift to the right. D) None of the above are correct.