Grapevine Bank receives a deposit of $200,000. Its required reserve ratio is 12 percent. How much of this deposit is available to be loaned to borrowers?
a. $12,000
b. $176,000
c. $200,000
d. $24,000
b. $176,000
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Unemployment benefits in western Europe are more generous than in the United States. As a result, ________ in the United States
A) frictional unemployment is higher B) frictional unemployment is lower C) cyclical unemployment is higher D) structural unemployment is higher E) avoidable unemployment is lower
Computer chips are a normal good. Suppose the economy slips into a recession so that income falls. As a result, the demand for computer chips ________ so that the price of a computer chip ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls E) decreases; does not change
The long-run aggregate supply curve shifts to the right when there is
A) an increase in the total amount of capital in the economy. B) an increase in the available technology. C) a decrease in the natural rate of unemployment. D) A and B. E) A, B, and C.
The demand for labor is a derived demand because it is derived from
A) the supply of labor. B) union pressure. C) the demand for the output the labor produces. D) natural law.