In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:

Can nominal GDP ever be less than real GDP?

What will be an ideal response?

Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5 percent, Fershur Bank's

A) desired reserves increase by $4,000. B) liabilities do not change but its assets increase. C) excess reserves increase by $4,000. D) desired reserves increase by $200 and its excess reserves increase by $3,800. E) assets and its liabilities change in opposite directions.