Suppose that while vacationing in Switzerland, you won 9,375 Swiss francs, which is the equivalent of $8,000. When you return to the United States, you deposit the $8,000 into your checking account

If the required reserve ratio is 15 percent, this would increase your bank's
A) assets by $1,200. B) required reserves by $8,000.
C) excess reserves by $8,000. D) liabilities by $8,000.


D

Economics

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If exports are less than imports (while other planned injections equal other planned leakages), the economy

a. expands. b. contracts. c. has rising prices. d. remains stable.

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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen asĀ 

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________ occurs when people smoke more after buying life insurance.

A. Adverse selection B. Cournot and Bertrand competition C. Asymmetric information D. Moral hazard

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