Suppose a bank has $8 million in deposits and a reserve ratio of 20 percent. Its required reserves are:
A. $40,000.
B. $400,000.
C. $1,600,000.
D. $16,000,000.
Answer: C
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From Elizabeth I to George III, England strongly influenced the institutional structure of colonial America. This influence is realized today on which of the following fronts?
(a) Private property rights (b) The role of international trade and finance in the U.S. economy (c) Population growth through immigration (d) All of the above
The graph shown demonstrates a tax on sellers. Once the tax has been imposed, the sellers produce ____ units and receive _____ for each one sold.
A. 15; $16
B. 15; $6
C. 31; $9
D. 31; $19
If Real GDP was $9,542 billion in year 2 and it had been $9,300 billion in year 1, what was the approximate economic growth rate during this time period?
A. 9.7 percent B. 2.4 percent C. 3.5 percent D. 2.6 percent
Figure 17-2
Given the situation in graph (1) in Figure 17-2, what movement would be expected in graph (2) from the economy's self-correcting mechanism?
a.
A to B
b.
A to D
c.
C to E
d.
D to C