Suppose Ariana deposits $75,000 in her bank. If the reserve ratio is 20 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks

If the Fed wants to stimulate the economy, ________

A) it reduces money supply B) it lowers spending C) it increases tax rates D) it lowers short-run interest rates

According to the Ricardo-Barro effect, an increase in the government budget deficit

A) lowers the real interest rate. B) has no effect on the nominal interest rate but does change the real interest rate. C) shifts the demand for loanable funds curve leftward. D) shifts the supply of loanable funds curve leftward. E) does not change the real interest rate.