A bank that has $10,000 in excess reserves can extend new loans up to a maximum of
What will be an ideal response?
$10,000
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Assume there are 4065 voters in a certain small town and let x = the preferred number of dollars charged monthly to support local parks. For Voters 1-1050, x = $10; for voters 1051-2121, x= $20, for voters 2122-3334, x = $30; for voters 3335-3998, x = $40; and for 3999-4065, x = $50 . Based on these preferences, which of the dollar amounts will win over any of the others?
a. $20. b. $30. c. $50 d. None of the above are correct.
When policy makers are constantly shifting back and forth between expansionary and restrictive monetary policy, this is most likely to
A) keep the general level of prices relatively stable because the periods of restrictive policy will just offset the periods of expansion. B) help promote economic stability because changes in monetary policy can be counted on to exert a predictable impact on the economy quickly. C) promote economic stability and stimulate employment. D) promote instability because the time lags of monetary policy are long and unpredictable.
A nation's average annual real GDP growth rate is 5%. Based on the "rule of 72," the approximate number of years that it would take for this nation's real GDP to double is
A. 14.4 years. B. 12.5 years. C. 10 years. D. 16.2 years.
An unexpected increase in aggregate demand
A. causes the price level to fall. B. the unemployment rate to rise. C. causes the price level to rise. D. both the unemployment rate and the price level to rise.