If a bank subject to a 20% required reserve ratio has $10,000 in excess reserves, it can extend, at a maximum, which quantity of new loans?
A. $2,000
B. $8,000
C. $10,000
D. $100,000
C. $10,000
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Fill in the blank: According to your text, ________ may be the most powerful force behind economic growth
A) minimum wages B) unionization C) technical innovation D) a well-motivated bureaucracy E) price compression
Refer to Table 11-7. What is the average total cost of production when the firm produces 120 lanterns?
A) $1,680 B) $72 C) $14 D) $12.3
The amount by which imports increase when income goes up by one dollar is called
A. the marginal propensity to import. B. the marginal propensity to consume. C. the spending multiplier. D. the money multiplier.
An increase in the value of a domestic currency in terms of other currencies is known as
A) an appreciation. B) a depreciation. C) a flexible exchange rate. D) a discount rate.