Refer to the information. The $40 billion deposit of new currency will support total checkable deposits of:
Answer the question on the basis of the following information about a banking system: new
currency deposited in the system = $40 billion; legal reserve ratio = 0.20; excess reserves
prior to the currency deposit = $0.
A. $160 billion.
B. $200 billion.
C. $40 billion.
D. $128 billion.
B. $200 billion.
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Your starting salary is $35,000 per year. After one year, you are given a raise that increases your nominal salary. Which of the following salaries would you prefer the most?
A) a $36,000 salary with a CPI of 103.0 B) a $39,000 salary with a CPI of 110.0 C) a $39,000 salary with a CPI of 109.0 D) a $37,000 salary with a CPI of 106.0 E) a $38,000 salary with a CPI of 104.0
The figure above shows the market for milk. If the efficient quantity of milk is produced, the producer surplus is
A) $100. B) $400. C) $200. D) $600.