If a bank receives an additional deposit of $50,000 and the desired reserve ratio is 20 percent, what is the amount of new loans the bank can make?
What will be an ideal response?
The bank can make loans equal to its excess reserves. With the $50,000 deposit, the bank's desired reserves are ($50,000 × 0.
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Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the
A) forgone work. B) forgone party. C) forgone working and partying. D) forgone working or partying, depending on which was your next best choice. E) test because you are taking it.
The leading example of sampling schemes in econometrics that do not result in independent observations is
A) cross-sectional data. B) experimental data. C) the Current Population Survey. D) when the data are sampled over time for the same entity.
Which of the following is an implication of deflation:
(a) Savings are discouraged; (b) Exports are more expensive; (c) Reduction in business revenue; (d) Excessive wage demands.
What would be shown through a sustained increase in real output per capita?
a. the size of budget surpluses b. efficient use of scarce resources c. the value of human capital d. long-term economic growth