Suppose Marquette Bank and Trust has $10 million in total deposits and the required reserve ratio is 7%. How many dollars can the bank use to seek profit opportunities?

Use the information below to explain adjustments that move the economy to a long-run equilibrium. Assume that firms and workers have adaptive expectations

The current unemployment rate = 7%. The natural rate of unemployment = 5.5%. Last year's inflation rate = 5%. This year's inflation rate = 4%.

Which of the following is most likely to lead to inflationary monetary policy?

A) declining oil prices B) resolution of conflict in the Middle East C) the enactment of a free-trade agreement with Mexico D) rising unemployment