Table 14.2Monetary Aggregates of the U.S. Financial SystemItemAmountCash held by public$100 billionTransactions deposits$300 billionRequired reserves$30 billionExcess reserves$0 billionU.S. bonds held by public$475 billionAssume an original balance sheet: If the Fed changes the required reserve ratio in Table 14.2 to 15 percent, the lending capacity of the system will eventually
A. Increase by $100 billion.
B. Increase by $15 billion.
C. Decrease by $1.5 billion.
D. Decrease by $100 billion.
Answer: D
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This year Iceland has a real GDP per person that is approximately 8 times greater than that of Cape Verde. Cape Verde's growth rate of real GDP per person was 5.2 percent
If Cape Verde maintains this current growth rate, approximately how many years will it take for Cape Verde's real GDP per person to reach the same level that Iceland has this year? A) 13.5 years B) 20 years C) 27 years D) 40 years E) 54 years
The figure above portrays a total revenue curve for a perfectly competitive firm. The price of the product in this industry
A) equals $0.50. B) equals $1.00. C) equals $2.00. D) cannot be determined.
How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.80 dollars per one British pound?
A) 40 dollars B) 90 dollars C) 50 dollars D) 100 dollars E) 95 dollars
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a. states with aggressive work requirements found that their federal grants also declined b. states with aggressive work requirements were rewarded with larger federal grants c. few welfare recipients were able to find jobs d. there was a significant increase in welfare spending per recipient e. states cut back on their provision of services such as job placement and child care