questions

If on receiving a checking deposit of $300 a bank's excess reserves increased by 8255, the required reserve ratio must be C} a. 5%. CI b.15%. C} c. 25%. C} El. 35%. C} e. 45%. According to the Fisher effect, ifrms are seeking a real return of 296 on loans and charge borrowers 5%, what '15 the expected rate of ination? C) a. 10%. O b. ?%. 0 LEE}. Cl d.3%. C) e. 2%. Price LRAS LRAS1 Level _.)... Y* W1 Real GDP Which of the following is the best explanation of the above change in longrun aggregate supply in the 115.? O a. A decrease in the cost of imported resources. O b. An increase in the technological capabilities of American manufacturers. O c. Implementation of trade barriers I.'.rith major industrial powers. D d. Disposable income increases clue to a major cut in marginal income tax rates. O e. The level of physical capital declines due to overuse. Assume US. trade is currently balanced such that mtal exports equal total imports. If the central bank were to pursue a policy of purchasing government bonds on the open market, what would be a likely consequence regarding the balance of trade? 0 a. Exports would increase, imports would decrease and a trade surplus would result. 0 b. Export-. would decrease, impor'ts would increase and a trade decit would result. O c. Imports and exports would increase and trade would maintain balance. 0 d. Imports and exports would decrease, but the effect on the balance of trade would be indeterminate. 0 e. None ofthe above would occuras only the credit account would be aFFected. The Federal Reserve decides to implement a policy ofhujring securities on the open market while the Bank of England maintains their current monetary policy. Based on the expected change in interest rates that will occur, what will be the change in exchange rates of the U.SA dollar versus the British pound? O a. Appreaabe O b. ApprECiabe O c. Q d. O e