If your bank receives a checkable deposit of 20,000 . and the banking system makes loans totaling ...

If your bank receives a checkable deposit of 20,000 . and the banking system makes loans totaling 180,000 . the maximum possible, then the required reserve ratio must be:
 a. 0.10.
  b. 0.20.
  c. 0.25.
  d. 0.40.
  e. 0.50.

QUESTION 2

If an economy's population grows at 3 percent and real GDP grows at 2 percent, then:
 a. per capita real GDP is declining.
  b. the economy's standard of living is increasing.
  c. per capita real GDP is negative.
  d. per capita real GDP is growing.
  e. the economy is experiencing unemployment.

QUESTION 3

In the long run, a decrease in aggregate demand causes the price level to _______ and the long-run aggregate supply curve to _____________.
 a. decrease; decrease
 b. increase; increase
 c. decrease; remain unchanged
  d. increase; remain unchanged

QUESTION 4

If loans are 69,000 . excess reserves are 1,400, and checkable deposits are 80,000 . then the required reserve ratio must be:
 a. 1.75 percent.
  b. 12 percent.
  c. 13.75 percent.
  d. 17.5 percent.
  e. 0.12 percent.

QUESTION 5

Which of the following is a true statement?
 a. The LDC classification is of the questionable accuracy.
  b. GDP per capita ignores the degree of income distribution.
  c. GDP per capita is affected by exchange rate changes.
  d. GDP per capita does not account for the difference in the cost of living among nations.
  e. All of these are true.

QUESTION 6

The long-run aggregate supply curve is:
 a. upward sloping.
 b. downward sloping.
 c. vertical at full-employment real GDP.
 d. horizontal at full-employment real GDP.