Answer the following question based on the information given below: Deposits at the central bank = 400 U.S. Government Securities = 600 Checking Deposit = 1,700 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 380 Borrowing from the central bank = 250 Cash in the Vault = 150 If the reserve requirement is 10%, the level of excess reserves equals:

A country reports exports minus imports of $300 billion, net interest income of $30 billion, net transfers of $50 billion, and no change in official reserves. The country is a

A) net liability. B) net borrower. C) net lender. D) debtor nation. E) net asset.

Suppose the government reduces its budget deficit at the same time that energy prices rise sharply. Which of the following is most likely to happen?

a. The price level will rise, since higher energy prices increase the cost of production b. Real GDP will fall since both events will tend to cause an economic contraction. c. The price level will fall because the aggregate demand curve has shifted leftward. d. Real GDP will rise as less government spending leads to more opportunities for the private sector. e. Both the price level and real GDP will fall.