Suppose the required reserve ratio is 10%. If a bank has total reserves of $80,000 and checkable deposits of $550,000, what is the amount of the bank's required reserves?
A) $25,000
B) $55,000
C) $80,000
D) $135,000
Ans: B) $55,000
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If there is no Ricardo-Barro effect, an increase in the government budget surplus will
A) lower the real interest rate. B) decrease the demand for loanable funds. C) raise the real interest rate. D) decrease the supply of loanable funds. E) not change the demand for loanable funds, the supply of loanable funds, or the real interest rate.
If the utility for two goods "x" and "y" can be measured as U = y, then it can be concluded that
A) "x" and "y" are perfect complements. B) "x" is a "bad". C) the indifference curves on the x,y graph are upward sloping where "x" is measured on the horizontal axis. D) the indifference curves on the x,y graph are horizontal where "x" is measured on the horizontal axis.