Exhibit 19-2 Balance Sheet of Springfield National Bank
Assets
Liabilities
Total reserves$500
Demand deposits$1,000
Loans$500
  In Exhibit 19-2, if Springfield National's customers write checks for $200 and the required reserve ratio is 20 percent, then its required reserves fall to:

If there was an adverse technological shock which decreased the demand for labor, then

A) Imports would increase. B) GDP would increase. C) Imports would decrease. D) GDP would decrease.

Answer the following statements true (T) or false (F)

1. Marginal utility is the accumulation of the total utility from successive units of a good or service consumed. 2. The law of diminishing marginal utility suggests that the total utility that a consumer derives from a product will increase slower and slower as more of the product is consumed. 3. If total utility increases as consumption of a good increases, then marginal utility must be increasing also. 4. With diminishing marginal utility, if a consumer reduces her consumption of a good, then her marginal utility from that good would increase. 5. The price of chicken = 5 while the price of pork = 9. If, after spending her entire budget, the consumer has MU of chicken = 6 while the MU of pork = 12, then the consumer should have bought more chicken and less pork in order to increase his total utility.