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(04.04 MC) Use the data table to answer the question that follows. Assets Liabilities Actual Reserves $6,000 Demand deposits $40,000 Loans $34,000   Assume the reserve requirement is 10%. Based on this small bank’s data, what is the maximum amount in new loans that it could give?

(04.07 LC) In the loanable funds market, supply is driven primarily by ________ and demand by ________

(04.06 MC) Which of the following holds true when the Fed conducts a contractionary open-market operation?

(04.05 MC) Use the graph to answer the question that follows.Assuming that a money market is initially in equilibrium at point B, which of the following points on the graph best represents the new point of equilibrium if there is an increase in the GDP of the country, all else constant?

(04.01 MC) What impact will an increase in the general price level have on the interest rate and bond prices?

(04.01–04.07 HC) For all graphs, be sure to correctly and completely label all axes and curves and use arrows to indicate the direction of any shifts.The loanable funds market in an economy is in equilibrium. Draw a correctly labeled graph of the loanable funds market, labeling the equilibrium real interest rate and the equilibrium quantity. Show the impact of an increase in household savings for this economy in your graph from part (a). Will the result be a shortage or surplus in the loanable funds market at the original equilibrium? Will borrowers be better or worse off as a result of the change in the real interest rate? How will investment spending on new facilities and equipment in this economy be impacted? Explain.

(04.06 MC) Which of the following accurately compares discretionary fiscal policy and monetary policy?

(04.01 MC) How does an increase in interest rates affect the opportunity cost of holding money and the repayment to creditors?

(04.06 MC) Suppose the reserve requirement is 10% with no excess reserves held with banks. What will the change in money supply be if the central bank purchases bonds worth $500 million from banks?

(04.05 MC) Use the graph to answer the question that follows.Which of the following is a reason for the shift in the money market as represented in the graph?