Consider the following T-account for National City Bank:
Assets Liabilities
Reserves $10,000 Deposits $100,000
Loans $90,000
If the required reserve ratio is lowered to 8 percent, how much can National City loan out?
A) $10,000 B) $8,000 C) $2,000 D) $0
C
Economics
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In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $7 to $6 is equal to
A) 2.50. B) 1.63. C) 0.40. D) 0.62. E) 1.00.
Economics
Refer to Figure 23-3. Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP1 to GDP2, and this amount is $400 billion. If the MPC is 0
75, then what is the distance between N and L or by how much did government spending change? A) $10 billion B) $100 billion C) $200 billion D) $300 billion
Economics