Suppose the reserve requirement is 10 percent and a person deposits $1,500 in a local bank. The local bank can now create a maximum of:
a. $150 in additional money, by lending $150.
b. $15,000 in additional money, by lending $15,000.
c. $1,500 in additional money, by lending $1,500.
d. $1,350 in additional money, by lending $1,350.
e. $135 in additional money, by lending $135.
d
Economics
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A) the relationship between prices and a household's budget. B) all possible prices and preferences for a good. C) combinations of goods among which a household is indifferent. D) budget lines among which a consumer is indifferent.
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Hyperinflation can be caused by
A) the central bank selling bonds to the government. B) the government selling bonds to the public. C) the central bank selling bonds to the public. D) the government selling bonds to the central bank.
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