1. Suppose a transaction changes a bank's balance sheet as indicated in the following account, and the required reserve ratio is 10 percent

Assets	Liabilities
Reserves	Deposits + $2,000

As a result of the transaction, the bank keeps reserves of $_____ and can make a maximum loan of

Question 45 options:

	$2000; $2000
	$200; $1800
	$2000; $1800
	$200; $2000

2. What are the fiscal policy instruments? When the Federal Government conducts an expansionary fiscal policy, how would those fiscal policy instruments change? In your answer explain how those changes might impact the real GDP.

3. Explain which, between the tax multiplier and the government purchases multiplier, could be more effective for the economy and why?

4. Explain how each of the following events would affect the long-run aggregate supply curve (that is, whether the LRAS shifts and in which direction).

a. Price level

b. Technology increases

c. Labor force decreases

d. Oil price fall

5. If the Bank of Canada orders an contractionary monetary policy, write what will happen to the following variables.

a. The money supply

b. Interest rates

c. Investment

d. Consumption

e. Net Exports

f. Inflation