This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The ability of a commercial bank to increase the money supply is limited by the A) availability ... (Read 83 times)

Chloeellawright

  • Hero Member
  • *****
  • Posts: 588
on: Jun 29, 2018
The ability of a commercial bank to increase the money supply is limited by the
 
  A) availability of eligible borrowers and the bank's reserves in relation to legal reserve requirements.
  B) demand of the public for liquidity.
  C) eligibility of the bank for currency drafts and its ratio of M2 to M1.
  D) willingness of customers to withdraw currency for circulation.

Question 2

The table gives data on the production and prices in a small economy. Use 2012 as the base period. Using the chained-price method, what is the growth rate of real GDP from 2012 to 2013?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jharrington11

  • Sr. Member
  • ****
  • Posts: 365
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

To calculate the growth rate, it is necessary to calculate the growth rates using first 2012 and then 2013 prices and then take the average of the two rates. This procedure gives:
Real GDP in 2012 using 2012 prices = 150
Real GDP 2013 using 2012 prices = 350
Real GDP 2012 using 2013 prices = 250
Real GDP 2013 using 2013 prices = 600
Growth rate using 2012 prices = 133.3 percent
Growth rate using 2013 prices = 140.0 percent
Hence the growth rate equals 136.7 percent, the average of 133.3 percent and 140.0 percent.


Chloeellawright

  • Member
  • Posts: 588
Reply 2 on: Jun 29, 2018
:D TYSM

  • Member
  • Posts:
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Orangutans are limited to the islands of Sumatra and Borneo, where their numbers are rapidly declini Orangutans are limited to the islands of Sumatra and Borneo, where their numbers are rapidly declini
Assessment of Grammatical Ability Assessment of Grammatical Ability
A slowdown in athletic ability begins in the 20s, although it is only noticeable for those who are t A slowdown in athletic ability begins in the 20s, although it is only noticeable for those who are t
Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure
The West Bank Challenge The West Bank Challenge
Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ... Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ...
Video: Mycobacterium tuberculosis: Drug Resistance and Natural Selection

For a complete list of videos, visit our video library