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The Bank of ABC has chosen the following initial balance sheet:
Assets: (Reserves- 40; Loans - 460)
Liabilities (Deposits - 500)
a) Based on the Bank of ABC's initial balance sheet, what is its desired reserve ratio?
b) Huck Finn comes along and deposits $10. After Huck's deposit, but before any other actions occur, what is the effect on the total amount of money in the economy? What is the effect on the total amount of currency and deposits in the economy?
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Between 2007 and 2011 the federal budget deficit grew from $160.7 billion to $1,299.6 billion, and the national debt grew from $8.9 trillion to $14.8 trillion.
A constraint on the total level of federal spending must be imposed and the budget process should process should begin with the establishment of this constraint
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