The following table is the consolidated balance sheet for the commercial banking system. All figures are in billions. Assume that the required reserve ratio is 10 percent:
Refer to the above information. The maximum amount by which this commercial banking system can expand the supply of money by lending is:
A. $120,000 billion
B. $300,000 billion
C. $600,000 billion
D. $900,000 billion
D. $900,000 billion
Economics
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If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the unemployment rate is measured as
A) U/N B) U/Q C) U/(N-Q) D) Q/N
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In order to achieve social efficiency, the size of an effluent tax should be based on:
a. the external cost created by the pollutant. b. people's willingness to pay for a cleaner environment. c. the expense of installing new "green" equipment. d. the number of free riders in the industry.
Economics