If Jose deposits $2,000 in his bank and the desired reserve ratio is 10 percent, what is the amount of new loans that the bank can make?
A) $2,000
B) $200
C) $1,800
D) $1,900
E) $2,200
C
You might also like to view...
For a single-price monopolist, marginal revenue is less than price because
A) the revenue gain from the last unit sold is offset by a revenue loss on the units that previously had been sold at a higher price. B) the revenue gain from the last unit sold is offset by further gains in price on units not sold at all. C) total revenue always decreases as output increases. D) the price does not have to be lowered on all previous units sold.
Figure 10-2
Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm. In the short run, this firm would
a.
earn positive economic profits.
b.
earn economic losses.
c.
go out of business.
d.
Cannot be determined with the information given.