The formula for the tax multiplier is A) (1 + b) / (1 - b). B) ...

[stevenposner]

The formula for the tax multiplier is
 
  A) (1 + b) / (1 - b). B) 1 / (1 - b). C) -b / (1 - b). D) b / (1 - b).

Question 2

A bank with 200 million in transaction deposits keeps 20 million in cash in the bank vault, 10 million in deposits at the Fed, and 5 million in government securities in the bank vault. Its total reserves equal
 
  A) 30 million. B) 10 million. C) 20 million. D) 35 million.

[kkenney]

Answer to Question 1

C

Answer to Question 2

A

[stevenposner]

Thank you

[kkenney]

No problemo