Suppose a bank has 8,000 in checkable deposits and the required ...

[burchfield96]

Suppose a bank has 8,000 in checkable deposits and the required reserve ratio is 0.2 . If actual reserves equal 3,000 . then excess reserves equal:
 a. 1,600.
  b. 1,400.
  c. 2,400.
  d. 5,000.
  e. zero.

Question 2

Expectations that the price level will decrease in the future will _____.
 a. make the current consumption function flatter
 b. shift the current consumption function downward
 c. result in an upward movement along the current consumption function
  d. result in a downward movement along the current consumption function
  e. make the current consumption function steeper

[IAPPLET]

Answer to Question 1

b

Answer to Question 2

b

[burchfield96]

Excellent

[peter]

Gracias!