Serena deposits $125,000 at Bank of the Pacific, which has a required reserve ratio of 9 percent. What is the bank’s money multiplier and how much money could potentially be created from Serena’s deposit?
a. 9; $11,250
b. 11.11; $1,388,750
c. 9; $1,125,000
d. 1.11; $138,750
b. 11.11; $1,388,750
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A tax of 20 percent per unit of imported garlic is an example of a(n)
A) specific tariff. B) ad valorem tariff. C) nominal tariff. D) effective protection tariff. E) a disadvantageous tariff
Suppose Tyler values a basketball at $20 . Jacqui values a basketball at $16 . The pre-tax price of a basketball $15 . The government imposes a tax of $2 on each basketball, and the price rises to $17 . The deadweight loss from the tax is
a. $1. b. $2. c. $3. d. $6.
Refer to the above diagram. Assume that G and T1 are the relevant curves, the economy is currently at A, and the full-employment GDP is B. This economy has a(n):
A. cyclically adjusted budget surplus. B. actual budget deficit. C. actual budget surplus. D. cyclically adjusted budget deficit.