If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of
A) $16,000.
B) $20,000.
C) $26,000.
D) $36,000.
C
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This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, the amount of deadweight loss created by the imposition of a tariff is area:
A. JK B. IJKL C. IL D. FGJK
This graph shows elasticity of demand because the distance between Q1 and Q2 is ______ the distance between P1 and P2.
a. greater than
b. less than
c. the same as
d. irrelevant to
During the 2008/09 recession, the Fed bailed out 25 percent of banks to keep them solvent.
Answer the following statement true (T) or false (F)
Fiscal policy refers to the
A. adjustment of government spending and taxes in order to achieve certain national economic goals. B. government policy that aims at raising the market prices of certain goods. C. adjustment of national income data to account for price level changes. D. manipulation of the money supply in order to increase the amount of cash that the government holds.