Exhibit 19-4 Balance sheet of Tucker National Bank
Assets
Liabilities
Required reserves$  4,000
Checkable deposits$20,000
Excess reserves16,000
  Loans           0
              
Total$20,000
Total$20,000
The required reserve ratio in Exhibit 19-4 is:

For most people, the problems of inflation are caused by the fact that

A) the inflation is unanticipated. B) the inflation is anticipated. C) the inflation rate causes the purchasing power of money to increase. D) all prices change so there is no way to protect themselves against the decline in their wealth.

Assume that India has a comparative advantage in producing a computer game. The United States has an absolute advantage in producing the same game. Mutually advantageous trade will have India producing and exporting the game while the United States will specialize in producing something else

a. True b. False