Assume that the reserve ratio is 20 percent and banks in the system are loaning out all their excess reserve. If people collectively cash out $10 billion from their checking accounts, then the lending ability of the banking system will be:
A. Increased by $10 billion
B. Decreased by $10 billion
C. Decreased by $40 billion
D. Decreased by $50 billion
C. Decreased by $40 billion
Economics
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Refer to Scenario 12.1. What is the probability of either Simon, Paula, or both of them trying to rescue the man?
A) 9% B) 49% C) 70% D) 91%
Economics
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Point c is Pareto efficient because
A) the MRS's are equal. B) the indifference curves are tangent. C) no mutual gains from trade exist. D) All of the above.
Economics