10. Which of the following is true? a) b) c) Excess reserves + actual reserves =

Question

10. Which of the following is true? a) b) c) Excess reserves + actual reserves = required reserves Actual reserves+required reserves excess reserve:s Actual reserves-required reserves = excess reserves Excess reserves-required reserves = actual reserves None of these are true. e) 11. An inflationary output gap can be caused by a) b) c) d) e) a decrease in aggregate demand. an increase in SR aggregate supply a decrease in SR aggregate supply Both A and B Both A and C 12. At potential GDP, there is only structural and frictional unemployment a) True b) False

Explanation / Answer

10) C. Actual reserves=excess reserves + required reserves

11)C. When DD>SS then there is inflationary gap

12)true because potential GDP=full employment GdP=NRU

9)Required reserve ratio=15%, the bank can lend 85% of deposit. Thus statement is false.

8)B. Money Supply=C+DD

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.