A bank currently has checkable deposits of $100,000, reserves of $30,000, and loans of $70,000 . If the required reserve ratio is lowered from 20 percent to 15 percent, this bank can increase its loans by:
a. $15,000.
b. $10,000.
c. $75,000.
d. $ 0.
e. $5,000.
a
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If two goods are substitutes, then
A) an increase in the price of one causes the demand for the other to fall. B) there is an inverse relationship between changes in the price of one good and changes in the demand for the other. C) if the price of one good falls, the demand for the other good falls also. D) changes in the quantity demanded of one good will not affect the demand for the other.
Which of the following would result in a movement along the demand curve?
A) a change in preferences B) an increase in the number of buyers C) an increase in the number of suppliers D) a decrease in income
The circular flow diagram shows the flow of resources between households and firms
a. True b. False Indicate whether the statement is true or false
By the property of "more is better" and transitivity, indifference curves:
A. can intersect one another only twice. B. do not intersect one another. C. may overlap one another. D. can intersect one another only once.