Suppose a bank has $100,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $20,000. Then this bank can make new loans in the amount of
A. $20,000.
B. $40,000.
C. $0.
D. $100,000.
Answer: C
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What will be an ideal response?
The owner of a bakery decides to drop the price of lemon cakes by 5%, how much does quantity sold have to rise to stop the revenue from decreasing
a. 2% b. 3% c. 4% d. 5%
Who said this? "Who is entitled to the rent of land? The producer of the land without doubt. Who made the land? God. Then, proprietor, retire!"
A. David Ricardo B. Henry George C. Pierre Joseph Proudhon D. Joseph Schumpeter
The supply curve is upward-sloping (i.e., it takes a higher price to induce greater production) because of
A. Increasing fixed costs. B. Increasing marginal costs. C. Increasing total costs. D. The decreasing skill level of additional workers.