The CA is equal to

A) Y - (C - I + G).
B) Y + (C + I + G).
C) Y - (C + I + G).
D) Y - (C + I - G).
E) Y + (C - I - G).


A

Economics

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A commercial bank has actual reserves of $1 million and checkable-deposit liabilities of $9 million, and the required reserve ratio is 10%. The excess reserves of the bank are

A. $900,000. B. $1 million. C. $100,000. D. $50,000.

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In Figure 17-3 above, suppose we are working under the assumption of the Lucas model. The Fed has been following an announced policy of "zero money growth for an indefinite period

" Suddenly and without warning it produces positive money growth and a "money surprise." This would result in a movement between points A) A and C. B) A and B. C) D and B. D) D and A. E) A and D.

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Regarding unemployment, the classical model implies that

A) unemployment always exists. B) unemployment cannot exist. C) voluntary unemployment is zero, but involuntary unemployment often is fairly high. D) only voluntary unemployment exists.

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One-shot inflation can originate

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Economics