Author Question: Suppose a bank has 8,000 in checkable deposits and the required reserve ratio is 0.2 . If actual ... (Read 39 times)

burchfield96 · **on:** Jun 30, 2018

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