If a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2, then the bank can lend:
a. $4,000
b. $16,000.
c. no more than $4,800.
d. no less than $3,000.
e. $1,000.
c
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Step one in the scientific method is
a. formulate a hypothesis b. reflect an opinion c. specify assumptions d. identify the question and define relevant variables e. test the hypothesis
Are changes in government purchases, ceteris paribus, more likely to be associated with a shift in the aggregate demand (AD) curve or a movement along the AD curve in the United States? Explain your reasoning.
What will be an ideal response?
Suppose the savings rate is 15 percent. For every dollar the government collects in tax revenue and spends on public goods and infrastructure, the net result will be _____.
(A) An increase in total investment by 85 cents. (B) A decrease in total investment by 15 cents. (C) An increase in total investment by 15 cents. (D) No change in the total investment.
Monopolistically competitive firms sell differentiated products.
Answer the following statement true (T) or false (F)