A New Energy Resource Has a Net Energy Ratio of 0.2

question 47

Multiple Choice

A new energy resource has a net energy ratio of 0.2. Energy evaluators are most likely to recommend

• A)using this energy resource immediately for transportation.
• B)using this energy resource immediately for production of electricity.
• C)minimizing use of this resource until net energy ratios for other energy alternatives become lower.
• D)rejecting its use now and in the immediate future.
• E)maximizing use of this resource until net energy ratios for other energy alternatives become higher.

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Definitions:

Fed

Known as the Federal Reserve System, the central bank of the United States oversees the nation's monetary policy.

Depository Institution

A financial institution legally allowed to accept monetary deposits from consumers, such as banks and credit unions.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve, either in their vaults or at the central bank, to ensure that they can meet withdrawal demands.

Simple Money Multiplier

A formula that estimates the maximum amount of money that banking can generate with each dollar of reserves.