Which of the following decreases aggregate supply?

A bank's assets consist of $500,000 in total reserves, $1,600,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $2,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 25 percent, what is the level of the bank's excess reserves? How much could it loan out as a result?

a. zero; zero b. $500,000; $500,000 c. $500,000; $2,000,000 d. $250,000; $1,000,000

Why are economic theories and principles imprecise? Shouldn’t they apply to everyone?

Please provide the best answer for the statement.