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December 20, 2014

Homework Help: Economic Help please

Posted by Sally on Tuesday, June 15, 2010 at 2:49pm.

1)What happen to the net public debt if the federal government operates next year with a:
1) Budget deficit?
2) balanced budget?
3) budget surplus?

2) A bank has $120 million in total assets, which are composed of legal reserves, loans, and securities. Its only liabilities are $120 million in transactions deposits. The bank exactly satisfies its reserve requirement, and its total legal reserves equal $6 million. What is the required reserve ratio?

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