Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only from of money. A bank that received a new checkable deposit of $10,000 would be able to extend new loans up to a maximum of:
A. $2,000.
B. $8,000.
C. $9,000.
D. $10,000.
Answer: B
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Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other
A) differences B) utility C) similarity D) elasticity
An isocost line represents:
A) all the combinations of inputs to a production process that result in the same total costs of production. B) all the combinations of inputs that result in the same amount of output. C) all of the combinations of two inputs for which the amount of money spent on each of the inputs is equal. D) all of the levels of output that result in the same total cost.
The Clean Air Act of 1970 has
a. been ineffective in reducing lead emissions in automobiles b. actually caused an increase in auto emissions c. been fairly successful in reducing auto emissions, especially lead d. been unsuccessful in reducing auto emissions, especially sulfur oxides e. been ineffective in reducing carbon monoxide emissions from autos
The time required for Congress and the President to realize that fiscal policy measures are needed to effectively deal with a recession is called the
A. political lag. B. education lag. C. recognition lag. D. decision lag.