"Complete" crowding out of fiscal policy occurs when the
A) LM curve is horizontal.
B) LM curve is upward-sloping.
C) LM curve is vertical.
D) IS curve is vertical.
C
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For this question, assume that the Phillips curve equation is represented by the following equation: ?t - ?t-1 = (m + z) - ?ut. Given this information, the natural rate of unemployment will be equal to
A) m + z. B) (m + z - ?). C) ?(m + z). D) 0. E) none of the above
Assume the reserve requirement is 10 percent. First National Bank has vault cash and deposits with the Fed of $40 million, loans and securities of $360 million, and demand deposits of $400 million. First National: a. is not in a position to extend additional loans
b. could extend a maximum of $10 million of additional loans. c. could extend a maximum of $20 million of additional loans. d. could extend a maximum of $40 million of additional loans.