Suppose you found $2,000 hidden in your mattress and deposited it in a demand deposit account at your bank. If the reserve requirement was 25 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves
a. $2,000; $8,000
b. $2,000; $6,000
c. $1,500; $8,000
d. $1,500; $6,000
c
Economics
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"Aggregate planned expenditure is the sum of planned consumption expenditure, investment, government expenditures on goods and services, and exports minus imports." Is the previous statement correct or incorrect?
What will be an ideal response?
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Net exports
a. are equal to total exports minus total imports b. are always positive because total imports exceed total exports c. are always negative because total exports exceed total imports d. always exceed total exports e. include goods produced and sold abroad
Economics