Assume that the required reserve ratio is 10%. An increase of $1,000 in the banking system's excess reserves may result in a total expansion of new deposits for the banking system as a whole by as much as
A) $1,000.
B) $9,000.
C) $10,000.
D) $100,000.
Ans: C) $10,000.
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The fundamental identity of national income accounting is
A) total production = total income - total expenditure. B) total production = total income + total expenditure. C) total production = total income = total expenditure. D) total production = total income/total expenditure.
The Keynesian range of the aggregate supply curve applies when the economy is at or near full employment
a. True b. False Indicate whether the statement is true or false
An appreciation in the U.S. dollar on the foreign exchange market will
What will be an ideal response?
The recession of 1937-38 had two basic causes: (1) _______________________; and (2) _________________________.
Fill in the blank(s) with the appropriate word(s).