Suppose You Found $10,000 Hidden Under a Rock and Deposited

question 55

Multiple Choice

Suppose you found $10,000 hidden under a rock and deposited it in a demand deposit account at your bank.If the reserve requirement was 20 percent, your deposit would add ____ to total demand deposits; the added loans that the banking system as a whole could make as a result of the deposit would generate ____ in additional demand deposits.

• A)$2,000; $4,000
• B)$2,000; $40,000
• C)$10,000; $40,000
• D)$10,000; $50,000

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Definitions:

Statistically Significant

A measure of confidence in the results of a study or experiment that indicates the observed effects are unlikely to be due to chance.

Replicable

Replicable refers to the ability of a study or experiment to be repeated with consistent results by other researchers or experimenters.

Experimental Group

In research, the group of participants that receives the treatment or intervention under investigation to determine its effect.

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure how the other tested subjects do.