If Howard takes out a $400 loan for one year at 5 percent interest annually, he will pay back a total of:

Which of the following is likely to happen if the government lowers tax rates?

A) Price level will fall. B) Investment will decrease. C) Consumption will increase. D) Unemployment will increase.

Suppose the desired reserve ratio is 10 percent and there is no currency drain. Then a $200 increase in the monetary base results in the banking system increasing the quantity of money by

A) $200. B) $2,000. C) $20. D) $10. E) $2,190.