Actual reserves are equal to
A) required reserves plus fractional deposits.
B) excess reserves plus liabilities.
C) minimum balances plus desired reserves.
D) government securities plus cash in the bank's vault.
E) desired reserves plus excess reserves.
Question 2
You buy new water skis and other new equipment for 2,500 and take a week off of your job, where you earn 1,000 a week, to go water skiing. The equipment you purchased was all produced in the United States. You think that the week was worth 4,000.
As a result of your vacation, GDP changes by how much?
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