In endogenous growth models, it is assumed that
a. there are external economies from public or private investments.
b. there are diminishing marginal returns to capital.
c. growth is explained by forces outside the model.
d. the capital-labor ratio is constant.
A
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The law of diminishing marginal utility states that total utility must diminish after the first unit of consumption of every good or service
Indicate whether the statement is true or false
Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent:
Refer to the above data. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits could expand by a maximum of approximately:
A. $120,000
B. $213,333
C. $333,500
D. $415,373