Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its loan balance can increase by a maximum of:
a. $0.
b. $90.
c. $100.
d. $900.
e. $910.
d
You might also like to view...
Using the information in the table above, depreciation equals
A) -$90 billion. B) $90 billion. C) -$70 billion. D) some amount that cannot be determined.
Keynes’ great book offered the promise of ending depressions through
A. investors reacting to lower interest rates. B. consumers taking over the ownership of factories. C. government nationalizing key industries. D. government influencing aggregate demand.
Two goods, X and Y, are complementary goods if the demand for X
a. increases when the price of Y increases b. increases when income increases c. decreases when the price of Y increases d. increases as the price of its substitute good increases e. decreases as the price of its substitute good decreases
Mr. Kohl made $44,000 in 2004, the base year. By 2010 he was earning $60,000. If the CPI had risen to 120 by 2010, how much were Mr. Kohl's real wages that year, and by what percentage had they changed?
What will be an ideal response?