Assume that in an all-currency economy the real interest rate is 4%, the expected rate of inflation is 8%, and the nominal interest rate is 12%. The monetary base equals $50 billion
The real seignorage revenue collected by the government would equal A) $4 billion.
B) $6 billion.
C) $8 billion.
D) $12 billion.
A
Economics
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Suppose Acme County Bank and Trust has $1 million in total deposits and the required reserve ratio is 5%. How many dollars is Acme bank allowed to use to seek profits?
A) 0 B) $50,000 C) $500,000 D) $950,000 E) Trick question: banks aren't allowed to seek profit.
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The overall U.S. balance of payments
a. shows a deficit b. shows a surplus c. is the merchandise trade balance d. equals exports minus imports e. shows how deficits in one account are exactly offset by surpluses in other accounts
Economics