Suppose that a bank's actual reserves are $5 million, its checkable deposits are $5 million, and its excess reserves are $3 million. The reserve requirement must be:
A. 40 percent.
B. 20 percent.
C. 10 percent.
D. 5 percent.
A. 40 percent.
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Generally, when the Federal Reserve lowers interest rates, investment spending ________ and GDP ________
A) decreases; increases B) increases; decreases C) increases; increases D) decreases; decreases
The Great Recession began in ________ and ended in ________
A) December 2007; June 2009 B) December 2007; December 2011 C) October 2008; June 2009 D) October 2008; December 2011
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a. Tariff b. Quota c. Health and safety standards d. Subsidy e. Government procurement
Policies focused on lowering interest rates to allow people to buy homes would be considered
A. demand-side policies. B. fiscal policies. C. supply-side policies. D. demand-side and supply-side policies.