Suppose a bank has $300,000 in deposits, a reserve ratio of 5 percent, and bank reserves of $45,000. This bank can make new loans in the amount of
A) $345,000. B) $45,000. C) $30,000. D) $15,000.
C
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Given an upward-sloping aggregate supply curve, attempts to reduce unemployment through monetary policy will aggravate current inflation as illustrated by a:
A. Leftward shift of aggregate demand. B. Rightward shift of aggregate demand. C. Leftward shift of aggregate supply. D. Rightward shift of aggregate supply.
If there is a shortage of nurses, it is expected that
a. wages for nurses will go up as hospitals try to fill these positions. b. wages for nurses will go down because of the increased competition between hospitals. c. the return on the human capital investment of current nursing majors will decline. d. wages for nurses currently practicing will increase, but new nurses will experience lower wages in the future.