In periods of high inflation, _____
a. people want to hold as much money as possible
b. the purchasing power of money decreases
c. the real interest rate exceeds the nominal interest rate
d. the nominal interest rates are likely to be low
e. the nominal interest rate equals the real interest rate
b
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In the balance sheet for the FBN bank above, the entries are in millions of dollars. If the desired reserve ratio is 10 percent, FBN Bank has desired reserves of
A) $360 million. B) $120 million. C) $280 million. D) $0.
The above table shows the distribution of income in two imaginary countries, Alpha and Beta
a) What does the table tell you about the second 20 percent group in each country? b) Calculate the cumulative percentage for both countries. c) Interpret the cumulative percentage for the third 20 percent group in both countries.