Suppose Diego deposits 4,000 in his bank. If the reserve ratio is 10 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks..
A) 0 B) 4,000 C) 10,000 D) 40,000
Question 2
If an economy grows at 6 percent per year, how many years would it take for real GDP to double?
What will be an ideal response?