A bank has a 20 percent reserve requirement, $8,000 in loans, and has loaned out all it can given the reserve requirement
a. It has $6,400 in deposits.
b. It has $10,000 in deposits.
c. It has $9,600 in deposits.
d. It has $1,600 in deposits.
b
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Which of the following is the most likely effect of lower apple juice prices on the price and quantity purchased of orange juice, a substitute product?
a. The price of orange juice will increase, and the quantity purchased will fall. b. The price of orange juice will fall, and the quantity purchased will increase. c. The price of orange juice will increase, and the quantity purchased will increase. d. The price of orange juice will fall, and the quantity purchased will fall.
Durable, marketable skills that generate higher income are also known as:
A. physical capital. B. investment capital. C. human capital. D. education capital.
Which government undertook significant infrastructure projects in the mid-1990s to improve roads and public works, which in turn increased the stock of physical capital and ultimately economic growth?
a. South Korea b. the United States c. Japan d. China
The Fed can surely reduce the rightward shift of the AD curve, but
a. stock and bond prices may fall dramatically b. inflation may rise sharply c. inflation would change in an unpredictable fashion d. recession may result e. unemployment may fall to below the natural rate