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Bilbo receives a $100 payment from the Middle Earth Insurance company located in Gondor (outside the Shire where he lives) for his destroyed ring. He deposits all of the money in the Hobbiton Bank in the Shire.
a) If the reserve rate in the Shire is set at 25%, how much of Bilbo's deposit must the bank keep? What type of reserves are these called?
b) How much can the bank loan out to Sam Gamgee? What type of reserves are these called?
The following is the production possibilities for a firm. At 0 labor units (strangely enough), there are 0 units produced. At 1 labor unit, there are 10,000 units produced, at 2 labor units, there are 25,000 units produced, at 3 there are 45,000, ..
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youve developed a very popular up-scale but reasonably priced clothing fashion line for young people. you produce
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