An individual bank can lend out at most its
a. actual reserves
b. fractional reserves
c. legal reserves
d. demand deposits
e. excess reserves
E
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For any given increase in spending that is not directly caused by an increase in income, the impact on equilibrium GDP is greater than the initial spending increase
Indicate whether the statement is true or false
What did the actions of the Federal Reserve during the 1990's demonstrate about monetary policy and rules?
Use the following table to answer the next question. The following national income data for an economy is in billions of dollars.Consumption$5,100Investment1,100Transfer payments1,050Government purchases1,400Exports850Imports950Net foreign factor income20GDP for this economy is ________.
A. $7,500 billion B. $6,400 billion C. $9,400 billion D. $10,470 billion
Sally is allocating her budget between two goods, A and B. If Sally has used up the budget on a combination of A and B for which MUA/PA exceeds MUB/PB, she can increase total utility by buying
a. more A and less B b. more B and less A c. more A without changing her consumption of B d. less B without changing her consumption of A e. more B and more A