Author Question: Refer to Figure 16-8. In the graph above, suppose the economy in Year 1 is at point A and is ... (Read 87 times)

ENagel · **on:** Jun 29, 2018

Refer to Figure 16-8. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?

A) decrease government purchases B) increase income taxes
C) sell Treasury bills D) increase government purchases

Question 2

Refer to Table 14-1. Suppose a transaction changes a bank's balance sheet as indicated in the T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank has excess reserves of

A) 0. B) 400. C) 3,600. D) 4,000.