Suppose the National Bank has total cash reserves of $2,000 and has $5,000 in total deposits. If its total excess reserves are $1,250, then the reserve requirement is equal to:
a. 25 percent.
b. 15 percent.
c. 10 percent.
d. 5 percent.
e. 20 percent.
b
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Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect: a. Andy's demand for pizza to increase
b. Andy's demand for pizza to decrease. c. Andy's quantity of pizza demanded to decrease. d. Andy's demand for beer to increase.
Which of the following statements is true?
A) In a price support program, consumers end up paying the price support. B) In a target price system, consumers end up paying the target price. C) In a target price system, the per-unit deficiency payment is equal to the difference between the quantity demanded at the market price and the quantity supplied at the market price. D) Acreage allotment programs directly (as opposed to indirectly) raise agricultural product prices. E) b and d