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Author Question: Aggregate planned expenditure is the sum of planned consumption expenditure, investment, government ... (Read 255 times)

swpotter12

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on: Jun 29, 2018
Aggregate planned expenditure is the sum of planned consumption expenditure, investment, government expenditures on goods and services, and exports minus imports. Is the previous statement correct or incorrect?
 
  What will be an ideal response?

Question 2

If a bank receives an additional deposit of 50,000 and the desired reserve ratio is 20 percent, what is the amount of new loans the bank can make?
 
  What will be an ideal response?


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manuelcastillo

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement accurately describes aggregate planned expenditure.

Answer to Question 2

The bank can make loans equal to its excess reserves. With the 50,000 deposit, the bank's desired reserves are (50,000  0.


swpotter12

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

cam1229

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Reply 3 on: Yesterday
Excellent

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