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 70 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
Excellent

DylanD1323

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Sexual swellings are one way for females to advertise their mating availability, thereby inducing ma Sexual swellings are one way for females to advertise their mating availability, thereby inducing ma
The Head Start program was designed to increase the school readiness of low-income children. The Head Start program was designed to increase the school readiness of low-income children.
A step stool can be used to assess the ability to use steps. A step stool can be used to assess the ability to use steps.
The age-related increase in spirituality is different for two cohorts born seven years apart. The ... The age-related increase in spirituality is different for two cohorts born seven years apart. The ...
Testing the client’s ability to feel vibrations, the toe Testing the client’s ability to feel vibrations, the toe
Seven bacteriophage deletion mutations (1 to 7 in the table below) are tested for their ability ... Seven bacteriophage deletion mutations (1 to 7 in the table below) are tested for their ability ...
Video: Fertilization and Development

For a complete list of videos, visit our video library