If a bank has 1 million in demand deposits, 400,000 in reserves, ...

[sarasara]

If a bank has 1 million in demand deposits, 400,000 in reserves, and faces a 30 percent reserve requirement, the amount of money that a bank could initially create by loaning out their excess reserves is:
 a. 600,000.
  b. 400,000.
  c. 300,000.
  d. 100,000.

Question 2

The hypothesis of political business cycles is based on the assumption that a vertical Phillips curve always holds.
 a. True
  b. False
  Indicate whether the statement is true or false

[Bison]

Answer to Question 1

d

Answer to Question 2

False