Assume that excess reserves are $10 million, the required reserve ratio is 10 percent, and total reserves are $145 million. Demand deposits are
A) $135 million.
B) $1.35 billion.
C) $1.35 million.
D) $1.45 billion.
B
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Excess reserves are
A) desired reserves minus actual reserves. B) required reserves minus actual reserves. C) liquidity funds minus actual reserves. D) actual reserves minus desired reserves.
The aggregate supply-aggregate demand model predicts that an unexpected increase in government spending will have what short-run effects?
What will be an ideal response?
Which of the following is an example of a nondurable good?
a. ice cream b. silverware c. motorcycle d. chair
Suppose that supply increases and demand decreases. What effect will this have on price and quantity?
A. Price will decrease and quantity will increase. B. Price will decrease and quantity will decrease. C. Price will increase and quantity may rise or fall. D. None of the statements associated with this question are correct.