In mid-2009, the unemployment rate stood at

An increase in the required reserve ratio would be

a. a restrictive policy because it lowers the amount of total reserves in the banking system. b. a restrictive policy because it lowers the amount of excess reserves in the banking system. c. an expansionary policy because it raises the amount of total reserves in the banking system. d. an expansionary policy because it raises the amount of excess reserves in the banking system. e. an expansionary policy because it raises the amount of required reserves in the banking system.

Which of the following events will leave GDP unchanged?

a. You purchase 100 shares of Wal-Mart stock. b. You pay $500 to repair the damage done to your car by an uninsured motorist. c. You decide to work five more hours per week at your job to pay for the repairs performed on your car. d. You purchase a new car at an auction.