If a customer deposits $10,000 into a bank, how much money would the bank be capable of lending to an eligible loan applicant if this bank retains 20 percent of the deposit to cover withdrawals?
(A) About $9,000
(B) About $8,000
(C) About $2,000
(D) About $7,000
Ans: (C) About $2,000
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Refer to the table above. Laborland's net factor payments from abroad equal ________
A) -$18 billion B) -$20 billion C) $25 billion D) $20 billion
What impact do you think that the movement of women from working in the household to working in the market has had on GDP? Why? Do you think that this points to a problem with GDP?
What will be an ideal response?
If the interest rate were 10 percent, the net present value of $100 to be received one year from now would be
a. $90. b. $90.91. c. $100. d. $110.
Economic studies of lottery winners and people who have inherited large amounts of money show that
a. the income effect of winning the lottery or inheriting large amounts of money likely outweighs the substitution effect for most people. b. the substitution effect of winning the lottery or inheriting large amounts of money likely outweighs the income effect for most people. c. most people view leisure as an inferior good. d. most people's labor supply is unaffected by changes in wealth.