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vlademirsimon vlademirsimon
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5 months ago
The following table shows the balance sheet for Poor Baby Bank.




Refer to the table above. What happens to stockholders' equity if there is an economic downturn and as a result, Poor Baby Bank loses 5 percent of its long-term investments and has to borrow another $10 from other banks?

▸ It increases to $18.

▸ It increases to $28.

▸ It decreases to $0 and the bank becomes insolvent.

▸ It decreases to $1.25.
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Macroeconomics

Macroeconomics


Edition: 3rd
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HCho0HCho0
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5 months ago
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It decreases to $1.25.
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