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QUESTION 10 The table below shows the balance sheet for First National Bank. If the reserve ratio is 10% which of the followi
QUESTION 11 Looking at the diagram below, what is the level of equilibrium GDP for a private open economy without a governmen
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Answer #1

Question 10

Answer - (c) The bank can give loans equal to $70,000

EXPLANATION - To balance the assets and liabilities on both sides, the loan amount should equal $70,000

Question 11

Answer - (c) $240

EXPLANATION - The equilibrium point where the graph representing C + I ​​​​g​​​+ X​​​​​n (without government sector) intersects the straight line gives the level of GDP

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