In Macroland There Is $12,000,000 in Currency

question 48

Multiple Choice

In Macroland there is $12,000,000 in currency.The public holds half of the currency and banks hold the rest as reserves.If banks'desired reserve/deposit ratio is 12.5%, deposits in Macroland equal ______ and the money supply equals _______.

• A)$48,000,000; $75,000,000
• B)$54,000,000; $54,000,000
• C)$48,000,000; $54,000,000
• D)$96,000,000; $96,000,000

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Definitions:

Convey Distance

The process of communicating or expressing the physical space or separation between objects or locations.

Continuity

The psychological principle suggesting that development involves gradual and ongoing changes, without sudden shifts or stages.

Organize Stimuli

The process of perceiving and categorizing sensory input from the environment into meaningful patterns or categories.

Figure-Ground

A principle in perceptual organization where an object (the figure) is perceived distinctly from its surroundings (the ground).