Suppose that there is a checkable deposit into YourBank. Which of the following statements is an accurate description of the changes that occur at YourBank? O A. The required reserves increase by the amount of the deposit. O B. The excess reserves increase by the amount of the deposit times the required reserve ratio. OC. The required reserves increase by the amount of the deposit times the required reserve ratio. D. The required reserves decrease by the amount of the deposit times the required reserve ratio.

Q: An initial increase in investment spending will generate: Less of an increase in income…

A: The amount of desired investment would rise as a result of an increase in investment, which would…

Q: Your grandparents decide they would like to put aside money to help support each of their…

A: Grandparents want to give $18000 to their grandchild on the 18th birthday of the grandchild. That…

Q: budgets $30 per week for transportation. To get around, he can either drive his car (D) the city bus…

A: Given ,  Total Income  = 30  Price of Driving = 5 Price of Bus ride = 2  Budget constraint or budget…

Q: You decide to purchase a new home and need a $80,000 mortgage. You take out a loan from the bank…

A: A mortgage is sometimes a need for purchasing a home, but it can be challenging to determine how…

Q: How does an increase in government borrowing affect the equilibrium interest rate in the market for…

A: The loanable funds market is a theoretical framework used to understand the dynamics of borrowing…

Q: What is the best definition for foreign direct investment?

A: This can be defined as the concept that shows the allocation of inputs —such as money, time, or…

Q: in the table to impute the missing information for the Year 3: Year 1 Year 2 Year 3 Goods Services…

A: current account balance = goods balance + services balance + net transfers + net income payments

Q: Saving is that part of income which is not consumed.  True/False

A: # income can be broken into two parts where one part is consumption and one part is Savings.

Q: If a lender gives you a loan for $500,000 today. You promise to pay $X a year for the next 30 years.…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: What is the financial market, what does it do in terms of saving investment and interest rates

A: A market is a place where the exchange of goods and services takes place between the consumers and…

Q: What was the maximum change in GSP from the government spending

A: Keynesianism has made strides in its ability to solve economic downturns by government intervention,…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.