Bank C receives a deposit of $40,000 . If the required reserve ratio in the economy is equal to 25 percent, the final change in demand deposits of Bank C will be equal to:
a. $160,000.
b. $200,000.
c. $100,000.
d. $150,000.
a
You might also like to view...
Suppose the Federal Reserve increases the money supply. Which of the following will tend to occur as a result of this policy in a Keynesian model?
A) an inflationary gap B) demand-pull inflation C) a movement along the short-run aggregate supply curve D) all of the above
The AIC is a statistic
A) that is used as an alternative to the BIC when the sample size is small (T < 50) B) often used to test for heteroskedasticity C) used to help a researcher chose the number of lags in a time series with multiple predictors D) all of the above
Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?
Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that all of the used cameras in the market are lemons (low quality), what number of used cameras sold will actually be lemons (low quality)?
A. 10 B. 15 C. 20 D. 25