Use the following balance sheet for the First Federal Bank to answer the next question.AssetsLiabilities + Net WorthReserves$100,000Checkable deposits$300,000Loans140,000Stock shares200,000Securities60,000 Property200,000 If the reserve requirement is 20%, this bank can safely expand its loans by a maximum of
A. $20,000.
B. $100,000.
C. $200,000.
D. $40,000.
Answer: D
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The present value of $100 to be received in the year 2014 is
A) less than the present value of $100 to be received in 2015. B) greater than the present value of $100 to be received in 2015. C) the same as the present value of $100 to be received in 2015. D) greater than the present value of $100 to be received in 2015 if the interest rate in 2015 exceeds the interest rate in 2014; otherwise, it is less.
According to the Law of Demand, the demand curve for a good will
A) shift leftward when the price of the good increases. B) shift rightward when the price of the good increases. C) slope downward. D) slope upward.
In the short-run Keynesian model, if the mpc equals 0.8, then to decrease planned aggregate spending by $30 billion at any output level, government spending must be decreased by ________ or net taxes must be increased by ________.
A. $30 billion; more than $30 billion B. $30 billion; $30 billion C. more than $30 billion; more than $30 billion D. less than $30 billion; less than $30 billion
According to the text, the Fed and other policymakers are concerned about:
A. inflation rates that are too high only. B. inflations rates that are too low only. C. inflation rates that are either too high or too low compared to its set target. D. annual inflations rates that exceed 10%.