Suppose the required reserve ratio is 15%. A $10 million deposit will, at most, allow an expansion of the money supply to
A. $250 million.
B. $150 million.
C. $147.5 million.
D. $66.7 million.
Answer: D
You might also like to view...
If total consumption is $5 billion, investments $2 billion, government purchases $1 billion, exports $1 billion, and imports $3 billion, the GDP must equal:
A. $6 billion. B. $12 billion. C. $9 billion. D. $3 billion.
The derived demand curve for loans slopes downward because as interest rates
a. fall, future income becomes less valuable. b. fall, investors develop pessimistic expectations. c. fall, future income becomes more valuable. d. rise, investors become pessimistic.
Participants in the ________ invest in stocks, bonds, and mutual funds, mortgage contracts, real estate and other opportunities with the expectation of receiving a financial return on their investment.
Fill in the blank(s) with the appropriate word(s).
As coffee becomes more expensive, Joe starts drinking tea, and therefore quantity demanded for coffee decreases. This is called:
A. the income effect. B. the change in equilibrium. C. the substitution effect. D. a shift in the demand curve