Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard. If the required reserve ratio is 10 percent, checking account deposits in the banking system as a whole could drop up to a maximum of
A) $0. B) $50. C) $500. D) $5,000.
D
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The successes of the 1960s were ascribed to the effects of
A. classical policies from the 1800s. B. classical policies from the 1930s. C. classical policies from the 1950s. D. Keynesian policies from the 1930s. E. Keynesian policies from the 1950s.
Real GDP can rise at the same time money supply falls if: a. velocity rises rapidly enough
b. velocity falls rapidly enough. c. the price level rises rapidly enough. d. either b. or c. occurs.
The Southern Common Market (MERCOSUR) is actually a
A. free-trade area. B. economic union. C. customs union. D. common market.
When actual inflation is greater than expected inflation,
A. there are transfers from lenders to borrowers. B. cyclical unemployment rises, according to Phillips-curve analysis. C. there are transfers from borrowers to lenders. D. the natural rate of unemployment rises, according to Phillips-curve analysis.