Suppose You Found a $100 Bill That Was Lost for Several

question 93

Multiple Choice

Suppose you found a $100 bill that was lost for several years under your grandmother's mattress. If the banking system has a cash drain of 5 percent, its target reserve ratio is 20 percent, and all excess reserves were lent out, your new deposit of the $100 bill would lead to an eventual expansion of the money supply of

• A)$20.
• B)$25.
• C)$200.
• D)$400.
• E)$500.

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less responsive to constant stimuli, allowing focus on changes in the environment.

Signal Transduction

The process by which a chemical or physical signal is transmitted through a cell as a series of molecular events, leading to a cellular response.

Semicircular Canals

Three fluid-filled tubes in the inner ear that play a key role in maintaining balance and detecting head movement.

Bony Labyrinth

A complex system of channels and cavities within the temporal bone of the skull, part of the inner ear structure.