If a bank that is subject to a 10 percent required reserve ratio has $20,000 in excess reserves, it can make new loans of:

a. $2,000 b. $18,000.
c. $20,000 d. $200,000.

c

Economics

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A $50 billion increase in both government spending and taxes will

A) increase GDP by less than $50 billion. B) not change the level of GDP. C) increase GDP by $50 billion. D) increase GDP by more than $50 billion.

Economics

The price elasticity of demand is calculated as:

A) the change in price divided by the change in quantity demanded. B) the change in quantity demanded divided by the change in price. C) the percentage change in price divided by the percentage change in quantity demanded. D) the percentage change in quantity demanded divided by the percentage change in price.

Economics