If a bank receives a new deposit of $10,000 . and the required reserve ratio is 25 percent, then the new money that can be created by the banking system, including the initial deposit, is:
a. $25,000.
b. $2,500.
c. $4,000.
d. $40,000.
e. $10,000.
d
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Assume that in an economy with 200M inhabitants, 90M work, 4M are looking for a job, 3M receive unemployment insurance compensation, and 6M receive unemployment insurance compensation and are looking for a job. What is the unemployment rate?
A) 13% B) 10% C) 6.5% D) 5%
Refer to Figure 2.1. What is the opportunity cost of increasing production of manufactured products from 500 tons to 600 tons per year?
A. 200 tons of agricultural products per year B. 400 tons of agricultural products per year C. 500 tons of agricultural products per year D. 600 tons of agricultural products per year
The assumption that "other things are constant" is also known as the
A. distinguishing characteristic of economics as a science. B. ceteris paribus assumption. C. relationships assumption. D. rational self-interest assumption.
You decide to go to LEGOLAND after you visit Disneyworld in Orlando. The cost of going to LEGOLAND after you visit Disneyworld is the ________ cost of getting from Disneyworld to LEGOLAND.
A. opportunity B. efficiency C. marginal time and money D. profit maximizing