Suppose the bank has a 10% reserve requirement, $5000 in deposits, and has loaned out all it can, given the reserve requirement
A. It has $500 in reserves and $4500 in loans
B. It has $50 in reserves and $4950 in loans
C. It has $555 in reserves and $4445 in loans
Ans: A. It has $500 in reserves and $4500 in loans
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If a country imposes a tariff on all imports, then you would expect to see:
a. an increase in this country's current account surplus. d. an increase in this country's foreign lending. c. in increase in this country's exchange rate. d. a and b. e. all of the above.
Long-run elasticity of supply is defined as
a. percentage change in quantity demanded in the long run divided by percentage change in price. b. percentage change in price divided by percentage change in quantity demanded in the long run. c. percentage change in quantity supplied in the long run divided by percentage change in price. d. percentage change in price divided by percentage change in quantity demanded in the long run.