Suppose that the required reserve ratio is 20 percent and you deposit $50,000 of currency given to you by the Bank of Canada into RBC bank. What is the potential increase in deposits in the banking system brought about by your deposit? What is the potential change in the money supply? a) $100,000; $50,000 b) $250,000; $50,000 Oc) $250,000; $200,000 d) $1,000,000; $500,000 If the consumption function is defined as C = 1,250 + 0.87, and Y = 20,000, what is the autonomous level of consumption expenditure? Oa) 0.8 Ob) 1,250 Oc) 17,250 d) 0.2 If the consumption function is defined as C = 1,250 + 0.8Y. and Y = 20,000, what is the autonomous level of consumption expenditure? a) 0.8 Ob) 1,250 c) 17,250 O d) 0.2 Why does the short-run aggregate supply curve shift to the left in the long run, following an increase in aggregate demand? a) Workers and firms adjust their expectations of wages and prices downward, and they push for higher wages and prices. b) Workers and firms adjust their expectations of wages and prices upward, and they accept lower wages and prices. c) Workers and firms adjust their expectations of wages and prices upward, and they push for higher wages and prices. o dy Workers and firms adjust their expectations of wages and prices downward. and they accept lower wages and prices