Please solve all questios If the reserve ratio is 15 percent and a bank receives a new deposit of $1500, thisbank1) must increase its required reserves by $225.2) will initially see its total reserves increase by $1500.3) will be able to make a new loan of $1275.4) All of the above are true.image 1 A stock market bust leads to a decrease in wealth in the economy. What happens toequilibrium price and RGDP in the economy?1) Equilibrium price and equilibrium RGDP increase.2) Equilibrium price and equilibrium RGDP decrease.3) Equilibrium price will rise and equilibrium RGDP will fall.4) Equilibrium price will fall and equilibrium RGDP will rise.image 2

In a fractional banking system, banks are mandated to retain only a portion of their deposits as…

If the reserve ratio is 15 percent and a bank receives a new deposit of $1500, this bank 1) must increase its required reserves by $225. 2) will initially see its total reserves increase by $1500. 3) will be able to make a new loan of $1275. 4) All of the above are true. image 1

If the reserve ratio is 15 percent and a bank receives a new deposit of $1500, this bank 1) must increase its required reserves by $225. 2) will initially see its total reserves increase by $1500. 3) will be able to make a new loan of $1275. 4) All of the above are true. image 1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please solve all questios

If the reserve ratio is 15 percent and a bank receives a new deposit of $1500, this
bank
1) must increase its required reserves by $225.
2) will initially see its total reserves increase by $1500.
3) will be able to make a new loan of $1275.
4) All of the above are true.
image 1

A stock market bust leads to a decrease in wealth in the economy. What happens to
equilibrium price and RGDP in the economy?
1) Equilibrium price and equilibrium RGDP increase.
2) Equilibrium price and equilibrium RGDP decrease.
3) Equilibrium price will rise and equilibrium RGDP will fall.
4) Equilibrium price will fall and equilibrium RGDP will rise.
image 2

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