Suppose actual output equals $30 billion and potential output
equals $20 billion, then this economy's output gap should be
expressed as:
Select one:
a. 50 percent.
b. $10 billion.
c. -33 percent.
d. 33 percent.
If bank reserves are 200, the public holds 500 in currency, and
the desired reserve-deposit ratio is 0.20, the money supply is
________.
Select one:
a. 1,300
b. 1,900
c. 1,500
d. 700