The tax rebate of 2008 is an example of

Suppose a bank has $200 million in checking account deposits with no excess reserves and the required reserve ratio is 15%. If the Fed reduces the required reserve ratio to 10%, the bank will now have excess reserves of

A) $0. B) $10 million. C) $20 million. D) $30 million.

Falling output, in the short run, could be due to:

A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.