A bank that has 10k in excess reserves can extent new loans up to a maximum of
What will be an ideal response?
10k
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Microeconomics
a. addresses scarcity from a global perspective b. examines how individuals, households, and firms make economic decisions c. is purely theoretical and has little value in explaining real-world phenomena d. focuses on what is happening in the economy as a whole e. answers the fundamental economic questions of how, when, where, and why
The demand for good X is estimated to be Qxd = 10, 000 ? 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income, and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, the income elasticity of good X is:
A. 0.008. B. 0.82. C. 0.082. D. 8.2.
An 11-year-old child who gets into a sold-out show by buying a $1.00 ticket when the regular price is $5.50 adds $1.00 to the theater owner's
What will be an ideal response?
How can the concepts of opportunity costs, scarcity and choice be illustrated by the production possibilities curve?
What will be an ideal response?