Homework Clinic
Social Science Clinic => Economics => Topic started by: WWatsford on Jun 30, 2018
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Suppose a bank has 8 million in deposits and a reserve ratio of 20 percent. Its required reserves are
A) 40,000. B) 400,000. C) 1,600,000. D) 16,000,000.
Question 2
Suppose the overall MPC is 0.9. If a 2 billion increase in imports to the United States will lead to a 10 billion decrease in GDP, the value of the marginal propensity to import must be
A) 0.1. B) 0.2. C) 0.5. D) 0.8.
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Answer to Question 1
C
Answer to Question 2
A