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?

Refer to Figure 15-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely

A) increase the inflation rate. B) decrease interest rates. C) not change interest rates. D) increase interest rates.

The individual firm maximizes its total profit by producing the level of output at which the difference between marginal revenue and marginal cost is as large as possible

Indicate whether the statement is true or false