Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5 percent, Fershur Bank's
A) desired reserves increase by $4,000.
B) liabilities do not change but its assets increase.
C) excess reserves increase by $4,000.
D) desired reserves increase by $200 and its excess reserves increase by $3,800.
E) assets and its liabilities change in opposite directions.
D
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If preferences are one-dimensional and preferences are single peaked, majority rule will result in selection of the project most favored by a. no one
b. the median voter. c. the average voter. d. everyone.
Sjen Mavago, the economics minister of the country of X-Marks-the-Spot, has concluded that entrepreneurs are unable to generate the kind of growth the country needs. Her decision to create state enterprises might be motivated by the desire to
a. earn profit b. provide jobs for friends and relatives of government officials c. take risks d. encourage a free market e. limit government's role in the economy