Assume that the Paris First National Bank has deposits of $20 million. If the legal reserve requirement is 20 percent and the bank is fully loaned out, the bank will have outstanding loans totaling
a. $2 million
b. $4 million
c. $10 million
d. $16 million
e. $20 million
D
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Over time, people have come to rely more on market-produced goods and less on goods that they produce for themselves. For example, busy people with high incomes, rather than cleaning their own houses, hire people to clean their houses. By itself, this change has
a. caused GDP to fall. b. not caused any change in GDP. c. caused GDP to rise. d. probably changed GDP, but in an uncertain direction; the direction of the change depends on the difference in the quality of the cleaning that has resulted.
Many movie theaters allow discount tickets to be sold to senior citizens because
a. senior-citizen laws mandate such discounts. b. goodwill efforts earn community respect and win loyal patrons. c. the theaters are profit maximizers. d. senior citizens lobby city councils for lower prices.
In the early 2000s car sales in China had slowed in part caused by the government's actions to limit businesses from lending funds to consumers. Assuming the car market in China can be analyzed with demand and supply curves, what best reflects the change in the market?
A. Supply curve shifts to the left with no change in demand. B. Demand curve shifts to the left with no change in supply. C. Both the supply and demand curves shift to the left. D. Both the supply and demand curves shift to the right.
Incomes of U.S. farmers tend to be boosted by:
A. Very good harvests on farms abroad B. Economic weakness in Europe and Southeast Asia C. Increased protectionism in farm policies abroad D. A depreciation of the U.S. dollar