If a bank has a total of $80,000 in deposits and has made three loans in the amounts of $10,000, $20,000, and $30,000, what is this bank's reserve ratio (assuming it has no other deposits or made any other loans) ? a) 20% b) 75% c) 25% d) 60%
Answers (1)
Disposable Income Consumption $5,000 $6,000 $7,500 $8,000 $10,000 $10,000 $12,500 $12,000 1. The marginal propensity to consume (MPC) is equal to: a. 0.2 b. 0.25 c. 0.75 d. 0.8 2. The marginal propensity to save (MPS) is equal to: a. 0.2 b. 0.25 c.
Answers (1)