In the simple deposit expansion model, if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves, the bank can now increase its loans by
A) $10.
B) $100.
C) $100 times the reciprocal of the required reserve ratio.
D) $100 times the required reserve ratio.
B
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Free-riding is a problem associated with
a. nonrivalrous goods. b. nonexclusive goods. c. both nonrivalrous and nonexclusive goods. d. neither nonrivalrous nor nonexclusive goods.
Figure 7-12
Which of the graphs in Figure 7-12 shows a marginal physical product curve that exhibits first increasing and then diminishing marginal returns to sunlight?
A. (a) B. (b) C. (c) D. (d)
Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table. Number of kites Per DayTotal Cost Per Day ($)0100111021263148417252006235 When Ben makes 2 kites per day, what is his average variable cost?
A. $63 B. $50 C. $26 D. $13
In the 1980s and most of the 1990s, the U.S. government budget balance was ________ and the U.S. current account balance was ________.
A. negative; positive B. negative; negative C. positive; positive D. positive; negative