A bank faces a required reserve ratio of 5 percent. If the bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?
a. $10 million
b. $0
c. $5 million
d. $15 million
c
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The most frequently used experimental or observational data in econometrics are of the following type:
A) cross-sectional data. B) randomly generated data. C) time series data. D) panel data.
The marginal product of any input into the production process is the:
A. increase in output that is generated by an additional unit of input. B. decrease in input that is generated by an additional unit of output. C. constant ratio of inputs to outputs. D. ratio total output divided by total quantity.
Economist B says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap. Government should either raise its __________ or cut _________________. I believe the tax multiplier is larger than the government spending multiplier, so I suggest government ___________________
A) taxes; spending; cut taxes B) spending; taxes; cut taxes C) taxes; spending; raise spending D) spending; taxes; raise spending E) none of the above