A bank loans Greg's Ice Cream $250,000 to remodel a building near campus to use as a new store. On their respective balance sheets, this loan is
a. a liability for the bank and an asset for Greg's Ice Cream. The loan increases the money supply.
b. a liability for the bank and an asset for Greg's Ice Cream. The loan does not increase the money supply.
c. an asset for the bank and a liability for Greg's Ice Cream. The loan increases the money supply.
d. an asset for the bank and a liability for Greg's Ice Cream. The loan does not increase the money supply.
c
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The rightward shift of the RS curve will lead to a ________ in the real interest rate, ________ in investment, and ________ in aggregate demand
A) fall; an increase; a decrease B) rise; an increase; an increase C) rise; a decrease; a decrease D) fall; an increase; an increase E) rise; an increase; a decrease
The wage rate rises. As a result, in the short run Real GDP will __________ and the price level will __________
A) rise; rise B) fall; fall C) remain constant; fall D) fall; rise E) rise; fall
A bank's reserve ratio is 10 percent and the bank has $5,000 in deposits. Its reserves amount to
a. $50. b. $500. c. $4,500. d. $4,950.
Refer to the information provided in Figure 2.3 below to answer the question(s) that follow.
Figure 2.3Refer to Figure 2.3. Assume that in this society the opportunity cost of sailboats in terms of surfboards is increasing. A graph of this society's production possibility frontier will be represented by Panel
A. A. B. B. C. C. D. D.