The "real" interest rate charged on a loan is the

A) prime rate.
B) prime rate plus the risk premium.
C) the rate charged minus the costs of supplying credit.
D) the rate charged minus the expected rate of inflation.

D

Economics

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If a bank receives an additional deposit of $50,000 and the desired reserve ratio is 20 percent, what is the amount of new loans the bank can make?

What will be an ideal response?

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If the price level decreases

A) the LM curve will shift to the right. B) the LM curve will shift to the left. C) the IS curve will shift to the right. D) the IS curve will shift to the left.

Economics