When a new deposit is made at a bank, required reserves represent the fraction of total deposit that the bank can loan out to borrowers
Indicate whether the statement is true or false
false
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If a profit-maximizing restaurant is going to increase its revenues by charging senior citizens (persons age 65 and over) lower prices than other customers,
a. the demand of senior citizens for the services of the restaurant must be inelastic. b. senior citizens must have lower incomes than other potential customers. c. the demand of senior citizens for the services of the restaurant must be elastic. d. senior citizens must have higher incomes than other potential customers. e. other customers must enjoy food more than senior citizens.
China has used its current account surplus to:
A. buy stocks on the New York Stock Exchange. B. make loans to foreigners. C. buy U.S. government and agency securities. D. buy German government and agency securities.
Government purchases include spending on goods and services by
a. the federal government, but not by state or local governments. b. federal and state governments, but not by local governments. c. federal, state, and local governments. d. federal, state, and local governments, as well as household spending by employees of those governments.
A U.S. citizen's gift for famine relief in Somalia would be considered a:
A. capital inflow. B. capital outflow. C. current account transaction. D. service trade transaction.