In an open economy, an increase in the government's budget deficit will ________ the domestic real interest rate and ________ the level of capital investment in the country, holding other factors constant.

A bank's reserve ratio is 5 percent and the bank has $1,000 in deposits. It's reserves amount to

a) $5. b) $50. c) $95. d) $950.

A possible sequence for the three stages of a financial crisis might be ________ leads to ________ leads to ________

A) asset price declines; banking crises; unanticipated decline in price level B) unanticipated decline in price level; banking crises; increase in interest rates C) banking crises; increase in interest rates; unanticipated decline in price level D) banking crises; increase in uncertainty; increase in interest rates