Assets Liabilities Deposits: $1450000 Capital: 0 Required Reserves: $460000 Loans $150000 Bonds: $840000 The above is the T-Accounts for TD bank. If the reserve ratio is 20 percent, what is the change in loans after the excess reserves are loaned out?
Assets Liabilities Deposits: $1450000 Capital: 0 Required Reserves: $460000 Loans $150000 Bonds: $840000 The above is the T-Accounts for TD bank. If the reserve ratio is 20 percent, what is the change in loans after the excess reserves are loaned out?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:Assets
Answer:
Liabilities
Required Reserves: $460000
Loans $150000
Bonds: $840000
The above is the T-Accounts for TD bank. If the reserve ratio is 20 percent, what is the change in loans
after the excess reserves are loaned out?
Deposits: $1450000
Capital: 0

Transcribed Image Text:Real GDP is $500 billion, the government collects 25% of any increase in real
GDP in the form of taxes, and the marginal propensity to consume is 0.8. If the
potential output equals $300 billion, the government could close the output gap by
decreasing the government spending by.
**Only put numbers in your answer, no dollar signs ($). If needed, round your answer to the nearest
whole number***
Answer:
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