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Assume that the reserve requirement is 12.5 percent and that $500,000 is added to Hometown Bank's excess reserves as a result of a change in Federal Reserve policy.
a. How much in new loans can Hometown Bank make as a result of this increase in excess reserves?
b. If the entire amount of Hometown Bank's new loans is spent and the funds are deposited in Bank B, by how much can Bank B increase its loan making?
c. What is the maximum amount by which loan making can be increased in the financial depository institutions system as a result of the increase in Hometown Bank's excess reserves?
d. What is the maximum amount in new loans that could be made in the financial depository institutions system following the initial increase in Hometown Bank's excess reserves if the reserve requirement were 20 percent?
The director of a theater company in a small college town is considering changing the way he prices tickets. He has hired an economic consulting firm to estimate the demand for tickets.
the e-activity presents two contrasting points of view. the employees who have been laid off and weyco incorporated
1. Many ethical thinkers have called for a worldwide ban on all forms of human cloning. Do you agree with the this argument Could we realistically allow therapeutic cloning but ban human cloning
What is the equilibrium. Calculate the consumer surplus and the producer surplus
Can the cobb-douglas production function be used to portray a production process in which returns to scale are increasing at low output levels and constant or decreasing at high output levels?
Almost all of the fossil fuels that we are now currently using were formed during the Carboniferous period. (b) There seems to be a strong correlation between increases in the availability of food energy per person and increases in human populati..
the company ABC Inc. bought a machine for automatic playback of " software " at a cost of $ 20,000 ( the "original cost" ) . The expectation was that the machine had a useful life of 5 years , after which have a residual value of $ 5,000 ( "salvage v..
Define the terms - You should write a paragraph explaining each concept as if you were writing for your 15-year-old sibling.
Describe those parts of the U.S. agricultural system dependent on slave labor. Why was the U.S. agricultural labor partly and not wholly dependent on slavery? Use economic reasoning.
The problem is related to Economics and it is talk about marginal utility and consumer surplus for a consumer of chicken nuggets. The answer discusses this in further detail.
consider a monocentric city. export firms have two options for transporting output to city centre a truck or a
Which of the following will not produce an outward shift of the production possibilities curve. reduction in unemployment rate.
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