Assume that the reserve ratio is 20% and banks in the system are loaning out all their excess reserve. If people collectively cash out $10 billion from their checking accounts, then the lending ability of the banking system will be
A. increased by $10 billion.
B. decreased by $40 billion.
C. decreased by $50 billion.
D. decreased by $10 billion.
Answer: B
Economics
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List five shortcomings of GDP which result in GDP not accurately measuring a country's well being
What will be an ideal response?
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