This topic contains a solution. Click here to go to the answer

Author Question: The ability of a commercial bank to increase the money supply is limited by the A) availability ... (Read 69 times)

Chloeellawright

  • Hero Member
  • *****
  • Posts: 588
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
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
Wow, this really help


Jossy

  • Member
  • Posts: 336
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

The human body produces and destroys 15 million blood cells every second.

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.

For a complete list of videos, visit our video library