Suppose a banking system has $200 million in deposits, a required reserve ratio of 10 percent, and total bank reserves of $35 million. Then the potential increase in deposit creation for the whole banking system is equal to
A. $3 million.
B. $0.
C. $15 million.
D. $150 million.
Answer: D
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Which of the following countries have used adjustments to the required reserve ratio as a primary tool of monetary policy?
A. United States B. India C. Mexico D. China
What changes must occur for the potential total output of the economy to grow?
Please provide the best answer for the statement.
The marginal revenue product is
A) the change in total output resulting from a one-unit change in variable output. B) the change in marginal output resulting from a one-unit change in variable input. C) the change in total revenue resulting from a one-unit change in variable input. D) the change in marginal revenue resulting from a one-unit change in variable input.
Refer to the figure above. What is the optimal number of machines rented if the market rental price is $5 per month?
A) 20 machines B) 40 machines C) 80 machines D) 100 machines