Suppose the banking system has no excess reserves, a reserve requirement ratio of 10%, and $50 billion of required reserves. What is the total checkable deposits in the banking system?
A. $50 billion
B. $500 billion
C. $450 billion
D. $550 billion
B. $500 billion
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A legal limit on the quantity of a good that may be imported is called a(n) ________.
A. tariff B. import tax C. trade limit D. quota
Contraction of the money supply can aggravate a recession.
Answer the following statement true (T) or false (F)
Suppose Colombia joins a trade bloc formed by Argentina, Brazil, Paraguay, and Uruguay. Before joining the trade bloc, the Colombian government has a tariff of 30 percent on imported meat, and Colombia's imports of 40,000 tons of meat came exclusively from the United States. The United States sold meat at a price of $2,000 per ton in the international market. After joining the trade bloc, Colombia switched to importing meat from the other member countries at a price of $2,100 per ton. Its imports increased to 50,000 tons. Calculate the amount of trade creation and trade diversion as a result of this change. For this product, did Colombia gain economic well-being from joining the trade bloc? If so, then how much? If not, then what is the minimum amount that Colombian imports of meat would
have to increase for Colombia to benefit from joining the trade bloc? What will be an ideal response?
Table 7.2GDP for Newland?Nominal GDP(in billions of dollars)GDP deflatorCPI2001$5,900120.1128.320026,300123.0131.720036,800126.3136.5Based on Table 7.2, the rate of inflation between 2001 and 2002 using the CPI was
A. 2.65 percent. B. 3.40 percent. C. 2.58 percent. D. 2.02 percent.