Suppose Acme County Bank and Trust has $1 million in total deposits and the required reserve ratio is 10%. How many dollars is Acme allowed to use to seek profits?

Suppose the U.S. money supply increases from $7.6 trillion to $8.3 trillion. If there is zero real economic growth, and velocity stays constant, then according to the quantity theory of money, the U.S. inflation rate during this period would be:

A. 6 percent. B. 3 percent. C. 9 percent. D. 12 percent.

In 2007, investment in France increased by 7 billion euros. Which of following occurs?

I. an upward shift in the AE curve. II. a leftward shift in the AD curve. III. an increase in the price level and real GDP in the short run. IV. an increase in the price level and no change in real GDP in the long run. A) I, II, III and IV. B) I and III only. C) I, III and IV only. D) III and iv only.