Suppose you found 5,000 hidden in your closet and deposited it in ...

[BRWH]

Suppose you found 5,000 hidden in your closet and deposited it in a demand deposit account at your bank. If the reserve requirement was 10 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves.
 a. 500; 5,000
 b. 4,500; 5,000
 c. 4,500; 45,000
  d. 4,500; 50,000

Question 2

Which of the following schools of thought stressed on a fixed-price model for macroeconomic equilibrium?
 a. Traditional Keynesians
  b. New Keynesians
  c. Monetarists
  d. Classical economists
  e. New classical economists

[Tabitha_2016]

Answer to Question 1

d

Answer to Question 2

a