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The First National Bank has reserves of $150,000 and demand deposits equal to $1,200,000. The reserve ratio is 10 percent. How much in excess reserves does the bank now have? What is the maximum amount the bank could currently lend out? Show all work. Part 2 – By how much could the money supply in the entire banking system expand if the First National Bank loans out all of their excess reserves?
Assume Caesar allocates his entire budget to the purchase of chips as well as soft drinks.
If the price of food falls by 10 percent and the quantity sold increases by 5 percent, then the price elasticity of demand in that range equals
Which of the followings is not true when a firm acts as a price taker. Tom decided to spend $100 on CD and cassette tapes. The price of CD is $10, and the price of cassette tape is $5. Which of the followings is true? Which of the followings is not t..
Other things equal, what effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects of the equilibrium price level and the level of real output.
If the central bank increases bank reserves (or the monetary base) by $25,000, and the reserve requirement is 5%, then the total money supply increases by how much? Why? The best explanation will be mathematical and descriptive, with at least one app..
The text notes that, if demand reversal were the cause of the Leontief paradox, then labor would be relatively cheap in the United States. Explain the reasoning behind this statement.
California is a large producer of strawberries. Oh No! There is a killer frost that kills half of the crop! (A)How has this affected supply or demand of strawberries? (B)What has happened to the price of strawberries? Please justify your answer by gr..
q.the long-run cost function for leanns telecommunication firm is cq 0.03q2. a local telecommunication tax of 0.01 has
In 1992, thirst Bush administration was worried about a lingering recession. The administration announced that households would receive a reduction in their taxes for the year 1992. However, this was not accompanied by a reduction in tax rates, and t..
he chinese furniture manufacturers produce high quality early amerian furniture and successfully export large quantities of the furniture to the United States.
Illustrate what do the economic indicators suggest about the current economy.
What are the recommendation for opening Disneyland in India and future plans for it? What would be the general objective and travel objectives, key persons with which to meet, activities to experience, travel plans and cost estimate to continue with ..
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