If $1000 Was Deposited in a Bank and the Reserve

question 17

Multiple Choice

If $1000 was deposited in a bank and the reserve requirement is 0.20,how much is available for loans?

• A)$900
• B)$910
• C)$800
• D)$930

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Definitions:

AS Curve

The Aggregate Supply curve, depicting the total supply of goods and services that firms in an economy will produce at different price levels.

Classical Theory of Employment

An economic theory that posits that the economy naturally operates at a level of full employment due to the flexibility of prices and wages.

Total Consumption

The aggregate amount of goods and services consumed by individuals and entities in an economy.

Total Saving

The aggregate saving in an economy, comprising both private saving by households and public saving by the government.