Given the following information about Gotham Bank:
Bank Deposits $50,000
Loans 34,000
Reserves 12,000
Reserve Requirement 20 percent
Gotham Bank is holding ________ in excess reserves.
A) $22,000 B) $12,000 C) $2,000 D) -$2,000
C
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In a command economy, the basic economic questions are answered by:
a. central authority. b. None of the answers are correct. c. individual buyers and sellers. d. the traditional methods.
Comparing the core inflation rate to the Consumer Price Index, the core inflation rate
A) controls for the biases of the CPI. B) uses current period quantities, not base period quantities. C) measures all goods produced, not just consumer goods. D) includes volatile elements not in the CPI. E) excludes the volatile elements of the CPI.
Improvements in the level of technology will generally shift the production function downward.
Answer the following statement true (T) or false (F)
If foreign residents buy U.S. Treasury securities to finance the budget deficit, then which of the following will likely occur?
A. a decrease in the trade deficit B. a reduction in the public debt C. there will be a trade balance D. an increase in the trade deficit