When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to hold any excess reserves but makes loans instead, then, in the bank's final balance sheet
A) the assets at the bank increase by $800,000.
B) the liabilities of the bank increase by $1,000,000.
C) the liabilities of the bank increase by $800,000.
D) reserves increase by $160,000.
B
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The natural rate hypothesis implies that the long-run Phillips curve will be:
a. downward-sloping. b. upward-sloping. c. vertical. d. horizontal.
The demand for labor curve depicts
a. a relationship between the price of a good and the quantity of labor necessary to produce different amounts of that good b. a relationship between wages and profits in a firm c. how the wage rate changes when the price of the good produced by labor changes d. a relationship between the real wage rate and the quantity of labor demanded e. how much labor will be hired at different profit levels