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If the Central Bank of Macroland Puts an Additional 1,000

question 70

Multiple Choice

If the Central Bank of Macroland puts an additional 1,000 dollars of currency into the economy, the public deposits all currency into the banking system, and banks have a desired reserve/deposit ratio of 0.10, then the banks will eventually make new loans totaling ________ and the money supply will increase by ________.

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Definitions:

Stock

A type of security that represents ownership in a corporation and a claim on a part of the company’s assets and earnings.

Earnings Per Share

A portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Dividends Per Share

This is the amount of dividends paid to shareholders per existing share, illustrating the dividend payout on a per share basis.

Provincial Marginal Tax Rate

The Provincial Marginal Tax Rate is the tax rate that applies to the last dollar earned and varies by province within a country.

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