If you deposit 500 cash into your account at a commercial bank. ...

[abarnes]

If you deposit 500 cash into your account at a commercial bank. If it faces a 10 percent required reserve ratio, as a result of your deposit, the bank will:
 a. have 450 of additional excess reserves.
  b. be capable of lending an additional 5,000.
  c. be capable of lending an additional 500
  d. have 50 of additional excess reserves.

Question 2

The _____ aggregate supply curve assumed by classical economists means that the equilibrium level of _____ is determined only by the aggregate supply curve.
 a. vertical; output
  b. horizontal; price
  c. upward-sloping; price
  d. horizontal; output
  e. downward-sloping; price

[Chocorrol77]

Answer to Question 1

a

Answer to Question 2

a