Author Question: National income is defined as A) gross domestic product less the consumption of fixed capital. ... (Read 123 times)

mcmcdaniel · **on:** Jun 29, 2018

National income is defined as

A) gross domestic product less the consumption of fixed capital.
B) gross national product plus transfer payments.
C) gross domestic product less retained earnings plus transfer payments.
D) gross national product less retained earnings plus transfer payments.

Question 2

Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent.

Assets Liabilities
Reserves + 2,000 Deposits + 2,000

As a result of the transaction, the bank can make a maximum loan of
A) 0. B) 200. C) 1,800. D) 2,000.