Assume that equilibrium GDP = $500 billion, and MPC = 80%.

If government spending increases by $20 billion, what will be the new level of equilibrium GDP?

At the start of 2020, the federal debt is 21 trillion. During 2020, the government spends 3.5 trillion, and takes in 2.5 trillion in taxes.

What will the federal debt be at the start of 2021?

Using the figures below, calculate the federal budget deficit.

Discretionary spending = 600

Tax receipts = 2,000

Spending on entitlements = 1,250

Interest on the debt = 250

If the required reserve ratio is 10%, and a bank has 60 in deposits and 8 in reserves, how much does the bank have in excess reserves?

Using the following items from a bank`s balance sheet, calculate the net worth of the bank.

Reserves = 20 (required = 10, excess = 10)

Deposits = 50

Loans = 31

Securities = 8

Borrowing = 10

Real property = 4

Bilbo Baggins earned $40,000 in 2018, $44,000 in 2019, and $50,000 in 2020. He owed $4,000 in taxes in 2018, and $5,000 in taxes in 2019. Assuming that his marginal tax rate is the same in 2020 as it was in 2019, how much tax did he owe in 2020?