If a bank has a reserve ratio of 8 percent, then
a. government regulation requires the bank to use at least 8 percent of its deposits to make loans.
b. the bank's ratio of loans to deposits is 8 percent.
c. the bank keeps 8 percent of its deposits as reserves and loans out the rest.
d. the bank keeps 8 percent of its assets as reserves and loans out the rest.
c
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How does the unemployment rate change in a recession and in an expansion?
What will be an ideal response?
Refer to the above figure. If the farmer has 50 acres of land, the farmer is producing at point a, and an acre of land yields 400 bushels of beans or 800 bushels of wheat, how much land is devoted to the production of wheat?
A) 8.5 acres B) 10 acres C) 12.5 acres D) 15 acres
Factors that cause the CPI to exaggerate the inflation rate do not include
a. the tendency of consumers to substitute relatively cheaper goods for those that have become relatively more expensive b. political pressure from unions and retirees on the Bureau of Labor Statistics to overstate the inflation rate c. the introduction of new technologies that make it easier to obtain the same standard of living d. improvements over time on the quality of products e. the increase in purchases from discount stores
An example of a good that is rival in consumption is:
A. tap water. B. a sweater. C. bottled water. D. All of these goods are rival in consumption.