You deposit $4,000 in currency in your checking account. The bank holds 20 percent of all deposits as reserves. As a direct result of your deposit, your bank will create
What will be an ideal response?
3,200 of new mone
You might also like to view...
If demand is ________, a price cut ________ the total revenue
A) elastic; increases B) unit elastic; decreases C) inelastic; increases D) inelastic; does not change E) normal; decreases
An increase in incomes in other countries, other things equal, would tend to cause U.S
a. exports to decrease and imports to increase. b. exports to increase and imports to increase. c. imports to decrease and exports to decrease. d. imports to increase and exports would remain unchanged. e. imports to remain unchanged and exports to increase.
Which of the following do economists not generally regard as a legitimate reason for the government to intervene in a market?
a. to promote efficiency b. to promote equality c. to enforce property rights d. to protect an industry from foreign competition
Explain why some economists believe an efficiency wage serves to make a business more profitable.
What will be an ideal response?