Rawiri deposits $350,000 into Country Capital Bank. Country Capital’s required reserve ratio is 15 percent. How much of Rawiri’s deposit can the bank lend to borrowers?
a. $52,500
b. $350,000
c. $200,000
d. $297,500
d. $297,500
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Monetary policy credibility has the benefit of ________
A) stabilizing inflation in the short run when faced with positive demand shocks B) stabilizing economic activity in the short run when faced with positive demand shocks C) transmitting the effect of aggregate demand shocks onto short-run aggregate supply D) enhancing the job opportunities of Federal Reserve officials after they leave the central bank
Multinational businesses produce and sell goods around the world
a. True b. False Indicate whether the statement is true or false
According to the principle of marginal productivity, if
a. the product price is less than marginal revenue product (MRP), the firm is using too little of the input. b. the price of an input rises, the quantity demanded of the input will increase. c. MRP is greater than product price, the firm should reduce the use of the input. d. price of the input equals MRP, the firm is maximizing profit.
Offering product-specific services ________ consumer demand and ________ the retailers' cost of selling the product.
A) decreases; increases B) decreases; decreases C) increases; decreases D) increases; increases