The Banks of the Mississippi has excess reserves of 20,000, desired reserves of 80,000 and the desired reserve ratio is 5 percent. What is the total amount of deposits in this bank?
A) 180,000 B) 100,000 C) 1,000,000 D) 1,600,000 E) 5,000
Question 2
Suppose that in a PPF graph, wheat is on the vertical axis and jets are on the horizontal axis. Moving down along the PPF, the
A) number of jets increases and the opportunity cost of jets decreases.
B) number of jets increases and the opportunity cost of jets increases.
C) opportunity cost of jets and wheat both increase.
D) amount of wheat increases and the opportunity cost of wheat increases.
E) amount of wheat increases and opportunity cost of wheat decreases.
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