Suppose you get a tax refund of $4,000 and instead of spending it on items that had been on your wish list for two years, you put it all in your checking account at the First National Bank of Urbana. And if the legal reserve requirement was 20 percent, your cash deposit of $4,000 in the Urbana bank makes it possible for the banking system to potentially create (including your $4,000 . a total
amount of money of
a. $800
b. $3,200
c. $4,000
d. $16,000
e. $20,000
E
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Refer to the table above. Which of the following is true?
A) Country X has a comparative advantage in the production of rice. B) Country X has a comparative advantage in the production of wheat. C) Country Y has an absolute advantage only in the production of wheat. D) Country Y has an absolute advantage only in the production of rice.
Potential output depends on all of the following except one. Which is the exception?
a. The supply of labor b. Labor productivity c. Household choices regarding labor and leisure d. The technology in current use e. The number of consumers in the market
U.S. national defense spending is approximately ____ the amount spent on health care
a. twice b. four times c. ten times d. 1/4
Suppose that the rate of interest increases. What will happen to the discounted present value of an investment?
a. It will increase. b. It will decrease. c. It will remain unchanged. d. It depends on the magnitude of the change.