If you go into a bank which faces a 10 required reserve ratio and ...

[Charlie]

If you go into a bank which faces a 10 required reserve ratio and borrow 1,000, the bank will ____ your checking account at the bank.
 a. add 1,000 to
 b. subtract 1,000 from
  c. add 5,000 to
 d. subtract 5,000 from

Question 2

Which of the following is true of the classical model?
 a. Changes in aggregate demand does not have any impact on the aggregate price level.
  b. The aggregate supply curve is perfectly elastic.
  c. An increase in aggregate demand increases the price level, output remaining unchanged.
  d. Changes in aggregate demand determines the equilibrium output of the economy.
  e. Real GDP and price level remain unchanged irrespective of changes in aggregate demand and supply.

[Bsand8]

Answer to Question 1

a

Answer to Question 2

c