Say the required reserve ratio is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of paying back the loan:
a. adds $2,000 in bank reserves
b. adds $10,000 in bank reserves.
c. eliminates $2,000 in bank reserves.
d. eliminates $10,000 in bank reserves.
b
Economics
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Budget deficits inevitably lead to inflation in
A) nations that are unable to borrow from the public. B) small nations. C) nations that can easily borrow from the public. D) budget deficits have no effect on inflation.
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If the market price is less than a perfectly competitive firm's average total cost, what sort of profit or loss is the firm earning?
What will be an ideal response?
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