Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only form of money. A bank that received a new checkable deposit of $10,000 would be able to extend new loans up to a maximum of

What are the factors that change saving and shift the supply of loanable funds curve?

What will be an ideal response?

A policy to do nothing and allow the economy to self-correct or adjust without interference from the federal government is also called a(n) _______________ policy:

a. nonintervention b. active c. stabilization d. fixed rule