Refer to Table 25-2. Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank can make a maximum loan of
A) $0. B) $800. C) $7,200. D) $8,000.
C
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Understanding economics would be helpful to which of the following individuals?
a. a college student planning her next semester courses b. a fashion designer selecting fabric for a new spring collection c. a restaurant owner deciding whether to expand his establishment's hours of operation d. All of the above
Public choice analysis suggests that bureaucrats and public-sector managers have a strong incentive to
a. economize on their spending so more funds will be available for other government programs. b. ensure that their budget is exactly the size that would be considered economically efficient. c. expand their budgets to sizes beyond what would be considered economically efficient. d. keep individual legislators fully informed as to every expenditure.