Suppose that a bank with no excess reserves receives a deposit into a checking account of $10,000 in currency. If the required reserve ratio is 0.20, what is the maximum amount that the bank can lend out?
A) $2,000
B) $8,000
C) $10,000
D) $50,000
B
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The imposition of both tariffs and nontariff barriers leads to: a. an increase in total surplus
b. increased domestic consumption. c. increases in the prices of imported goods. d. increased foreign production.
Which of the following demographic groups does not bear a disproportionate burden of poverty?
A. Households headed by women. B. Persons 65 or over. C. Hispanics. D. Children under 18.
Utility refers to
A. the value of a good or service. B. the usefulness of a good or service. C. the want-satisfying power of a good or service. D. the degree to which a good or service is needed.
If the government forces a natural monopoly to produce the output level at which P = MC, the firm will
A. Produce where ATC is at a minimum. B. Fail to produce efficiently. C. Produce less than the profit-maximizing level of output. D. Incur losses.