From 1970 to 1998 the U.S. dollar
a. gained value compared to the German mark because inflation was higher in Germany.
b. gained value compared to the German mark because inflation was lower in Germany.
c. lost value compared to the German mark because inflation was higher in Germany.
d. lost value compared to the German mark because inflation was lower in Germany.
d
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For which type of organization is unlimited liability likely to be the greater problem-proprietorships or partnerships? Why?
What will be an ideal response?
Assume that households and businesses deposit $10,000 in this bank and that this currency is added to the bank’s reserves. In column (1) show the bank’s balance sheet after this occurs. Is there a change in the money supply? In column (2) show what would happen if the bank now loans all of its excess reserves to a depositor. Is there a change in the money supply?
Suppose the Second National Bank has the following simplified balance sheet. The reserve ratio is 25%.
