Author Question: Reserves of a bank equal its A) deposits with the Federal Reserve. B) vault cash plus deposits ... (Read 43 times)

torybrooks

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Reserves of a bank equal its
 
  A) deposits with the Federal Reserve.
  B) vault cash plus deposits of its customers.
  C) vault cash plus deposits with the Federal Reserve.
  D) vault cash.

Question 2

The government purchases multiplier equals the change in ________ divided by the change in ________.
 
  A) consumption spending; government purchases B) government purchases; consumption spending
  C) government purchases; equilibrium real GDP D) equilibrium real GDP; government purchases



mirabriestensky

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Answer to Question 1

C

Answer to Question 2

D



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