Long-run aggregate supply curve corresponds to
A) real GDP when the economy is above full employment.
B) real GDP when the economy is at full employment.
C) the economy outside its production possibilities curve.
D) the economy inside its production possibilities curve.
B
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Suppose that the bank has the following balance sheet:
Assets Liabilities Reserves $75,000 Deposits $500,000 Loans $430,000 Net worth $5,000 If the required reserve ratio is 10 percent, what is the maximum the bank can loan out? Suppose the bank makes this loan and the borrower spends the money, which is deposited in a different bank. Show the impact of these transactions on the bank's balance sheet.
The Federal Reserve's main source of income is
a. fees charged to banks. b. funds budgeted by Congress. c. fees charged to the public every time they use an ATM. d. income from interest on the government securities it owns.