Suppose a credit union has checkable deposits of $500,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $4,000, then its actual reserves are:

Suppose a country with a large domestic textile industry removed all tariffs on imported textiles, we would expect domestic:

a. textile prices to decline. b. textile production to increase. c. textile employment to increase. d. textile prices to rise.

Which of the following would be classified as a government purchase?

a. Social security payments b. Government purchases of computers c. Unemployment insurance payments d. Welfare payments e. Veterans' Administration payments.