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Author Question: A bank can only make a loan if it has A) excess reserves. B) a creditworthy customer willing to ... (Read 229 times)

jc611

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on: Jun 29, 2018
A bank can only make a loan if it has
 
  A) excess reserves.
  B) a creditworthy customer willing to pay a high interest rate.
  C) permission from the Federal Reserve.
  D) reserves equal to its deposits.

Question 2

What is the effect on real GDP per person if labor productivity increases?
 
  What will be an ideal response?


joshbk44

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

Real GDP equals (aggregate hours)  (labor productivity). Hence an increase in labor productivity increases real GDP. Real GDP per person equals (real GDP)/(population). Therefore an increase in real GDP with no change in the population increases real GDP per person.


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jc611

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Reply #2 on: Jun 29, 2018
Thank you :)


joshbk44

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Reply #3 on: Jun 29, 2018
Happy to help you


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