Suppose the banking system holds no excess reserves. If the required reserve ratio is 0.10 and the money multiplier is 2.5, what is the value of the currency-deposit ratio?
What will be an ideal response?
(1 + (C/D))/((C/D) + 0.10 ) = 2.5; 1 + C/D = 2.5((C/D) + 0.1 ); 0.75 = 1.5(C/D); C/D = 0.5
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A) zero. B) 50 units per week. C) 150 units per week. D) 250 units per week.
Is it possible for technological change to be negative? If so, give an example
What will be an ideal response?
An insurance company offering both high-deductible and low-deductible plans is an example of:
A. signaling. B. statistical discrimination. C. building a reputation. D. screening.
The owners of preferred stock
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