If the reserve requirement is currently 20%, what is the maximum amount of money that could be generated from a $2,000 bank deposit?

If the required reserve ratio is 5 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is

A) 2.5. B) 2.72. C) 2.3. D) 0.551.

Which of the following is true about the combination of mops and brooms represented by point E in Figure 1.3 and using PP1?

A. Point E is attainable only if more resources become available or technological advances are made. B. Point E is unattainable if this economy becomes more efficient. C. Point E is attainable if this economy uses more of its available resources. D. Point E is efficient now.