Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent
Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one
B) two
C) nine
D) ten
A
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The addition of new resources often enables a nation to
a. produce more goods and services b. produce less goods and services c. produce more goods but fewer services d. invade other nations and steal their resources
Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the state's revenue and increase employment in the state. If Missouri did so,
A) the prices of goods imported into Missouri would fall. B) the state's total output would definitely increase. C) the standard of living within Missouri would decrease. D) workers with jobs in new firms replacing out-of-state imports would earn high income. E) other states would begin to dump in Missouri.