Question
Assume banks always lend as much as they are allowed to by law, and assume the required reserve ratio is 20%. John deposits $5,000 in
Assume banks always lend as much as they are allowed to by law, and assume the required reserve ratio is 20%. John deposits $5,000 in Bank 1. Bank 1 makes a loan to a customer and the money ends up being deposited in Bank 2. Fill in the table and enter whole numbers only. Bank 1 Bank 2 Amount Deposited Change in Excess Reserves Change in Required Reserves S Consider each of the following transactions. Identify the contribution to this year's GDP by entering a numerical value. Do not enter dollar signs or commas. Erin's Antiques goes out of business and sells the building in which the shop has been located for the last 8 years for $2,000,000. She pays a real estate agent a 5% commission. $ Jacob sells his 3 year old car to a friend for $15,000. $ MattressRUs produces 100 mattresses at a cost of $400 each and sells 90 of them to consumers for $450 each. $
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