If the reserve ratio is 5 percent, then $600 of additional reserves can create up to
a. $30 of new money.
b. $3,000 of new money.
c. $12,000 of new money.
d. None of the above is correct.
c
Economics
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Taxes are the only mechanism by which the federal government earns money
Indicate whether the statement is true or false
Economics
The substitution effect
A) is always larger than the price effect. B) always decreases purchases of a good as the price of a good rises. C) increases purchases of the good as the price rises if the good is a normal good. D) is always smaller than the income effect.
Economics