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amount a bank can lend out is equal to:

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(1);I) If the required reserve ratio is 0.12, the amount a bank can lend out is equal to;a - 12% of its deposits;b - 12% of its reserves;c - 88% of its deposits;d - 88% of its reserves;II) Monetary policy affects;a - only inflation;b - only output;c - both inflation and output;d - neither inflation nor output;III) In 2003 nominal GDP was $11.00 trillion and the GDP deflator was 106.0. Given this information, what was real GDP in 2003?;a - $9.78 trillion;b - $10.38 trillion;c - $11 trillion;d - $11.66 trillion;IV) During a recession, policy makers who use the AS/AD model would probably recommend an open market;a - sale of government securities that reduces interest rates;b - purchase of government securities that reduces interest rates;c - sale of government securities that raises interest rates;d - purchase of government securities that raises interest rates;V) If the economy dips into a recession, automatic stabilizers will cause;a - tax receipts to fall and government spending to rise;b - tax receipts to rise and government spending to fall;c - both tax receipts and government spending to rise;d - both tax receipts and government spending to fall;VI) Suppose most economists agree that the target rate of unemployment is between 4 and 7 percent. If the actual unemployment rate is 11 percent, then;a - both expansionary and contractionary policies are appropriate;b - expansionary monetary & fiscal policies are appropriate;c - contractionary monetary & fiscal policies are appropriate;d - neither expansionary nor contractionary policies are appropriate;(Instructions - select one correct letter for each section, i.e. one for I) one for II) etc. Thank you!)

 

Paper#26880 | Written in 18-Jul-2015

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