In October of 2014, the nominal interest rate earned on money market accounts was around 0.20 percent. This interest rate is a measure of which of the following?

A) the opportunity cost of holding money
B) the inflation rate
C) the demand for money
D) the real interest rate


A

Economics

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Suppose that you deposit $2,000 in your bank and the required reserve ratio is 10 percent. The maximum loan your bank can made as a direct result of your deposit is

A) $200. B) $1,800. C) $2,000. D) $20,000.

Economics

Economies that are more open seem generally to be economies that grow faster. How might this be explained?

What will be an ideal response?

Economics

Costs should always be evaluated before determining benefits.

A. True B. False C. Uncertain

Economics

If this is an open economy, the price of a car will be ________.

A. $10,000/car B. $8,000/car C. $14,000/car D. $6,000/car

Economics