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Banks wish to hold no excess reserves, desired reserve ratio is the same for all banks and there is no currency drain. The following T-account

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Banks wish to hold no excess reserves, desired reserve ratio is the same for all banks and there is no currency drain. The following T-account represents the balance sheet of ABC commercial bank: Assets Liabilities Reserves 50 Deposits 1000 Loans 1050 Capital 100 The ABC's reserves are on target. Then receives a new deposit of $174. How much loans will it issue as a result? Answers in $s. w Select one: a. 174.00 b. None of the answers are correct. c. 182.70 O d. 8.70 e. 165.30 All data in real $ bn. Assume a loanable funds market in a closed economy with government. If, at a current level of real interest rates, Y* = 2042, C = 1355, G = 574 and T= 416, how much is public saving? Answer in $s. Select one: a. 271 b. 113 O c. 158 d. None of the answers offered are accurate. e. - 158 Next page age Dact Linal am with colutione O L C

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