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1a.) Exhibit 11-2 BANK B Assets Liabilities $30,000 $200,000 $ 0 Refer to Exhibi

ID: 1210794 • Letter: 1

Question

1a.)

Exhibit 11-2

BANK B

Assets

Liabilities

$30,000

$200,000

$        0

Refer to Exhibit 11-2. Rachel took a $100 bill she was keeping at home and deposited it in her checking account at Bank B. The maximum change in the checkable deposits brought about by the banking system will be

  

$667.

$400.

$567.

$900

$1,000.

1b.)

Exhibit 17-1

United States

France

Good X

Good Y

Good X

Good Y

120

0

60

0

80

10

40

20

40

20

20

40

0

30

0

60

Refer to Exhibit 17-1. Considering the data, which of the following terms of trade would both countries agree to?

  

4.5X = 1Y

0.5X = 1Y

5X = 1Y

3X = 1Y

1c.)

If you believe the economy is self-regulating, you are more likely to be a(an) ____ than a(an) ____.

  nonactivist; activist

Keynesian; monetarist

activist; nonactivist

advocate of fiscal policy; advocate of monetary policy

b and d

BANK B

Assets

Liabilities

Required Reserves

$30,000

Checkable Deposits

$200,000

Excess Reserves

$        0

Explanation / Answer

1)A

$567

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