Suppose you found $10,000 hidden under a rock and deposited it in a demand deposit account at your bank. If the reserve requirement was 10 percent, your deposit would initially add ____ to total demand deposits and over time increase the money supply by a maximum of ____

a. $10,000; $100,000
b. $10,000; $90,000
c. $1,000; $90,000
d. $1,000; $9,000

a

Economics

You might also like to view...

In 2009, the United States largest balance of trade deficit was with

a. the European Union b. Canada c. China d. Mexico e. Brazil

Economics

Beginning at the vertical axis intercept, as a consumer moves down the budget line, she will find that

a. the marginal utility per dollar spent on the vertical axis good decreases b. the marginal utility per dollar spent on the vertical axis good increases c. the marginal utility per dollar spent on the horizontal axis good increases d. the marginal utilities per dollar spent on both goods increase e. the marginal utilities per dollar spent on both goods remain constant along that particular budget line

Economics