If a bank has a required reserve ratio of 15% and has required reserves of $225,000,000 how much does the bank hold in deposits?
a. $33,750,000
b. $210,000,000
c. $240,000,000
d. $1,500,000,000
d. $1,500,000,000
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In November, 2012, U.S. lawmakers were faced with a "fiscal cliff:" if they did not agree on how to reduce the federal deficit, automatic tax increases and drastic cuts in government spending would take effect
What would happen if the fiscal cliff occurred? A) The aggregate demand curve shifts leftward, the price level falls and real GDP decreases. B) The aggregate demand curve shifts rightward, the price level rises and real GDP increases. C) The short run aggregate supply curve shift leftward, the price level rises and real GDP decreases. D) The short run aggregate supply curve shifts rightward, the price level falls and real GDP increases.
If the government were to increase its spending, it would expect:
A. aggregate demand to shift to the right. B. aggregate demand to shift to the left. C. aggregate supply to shift to the right. D. aggregate supply to shift to the left.
If the economy is represented in the graph shown and is currently at point E3, then the economy must be in:
A. long-run equilibrium. B. a recession. C. an economic boom. D. an economic recovery.
Refer to the given figure.
If the Federal Reserve wants to set the nominal interest rate at 1 percent, it must conduct open market ________ to set the money supply at ________.
A. purchases; 900 B. sales; 900 C. purchases; 300 D. sales; 100