Answer:
The answer is B.
Explanation:
Gross Domestic Product (GDP) is the total market value of all the final goods and services produced within a sovereign nation(country) during a given period of time usually a year.
Gross Domestic Product (GDP) can be calculated using expenditure method or income method or value-added method.
To analyze this question, expenditure method will be used. The formula is C + I + G + (X-M)
where C is the consumer spending
I is the business investments
G is the government spending
X is the exports
M is the imports.
Government has injected $200 billion into the economy through its spending.
This $200 billion is gotten from an increase in taxes, meaning consumers' disposable income has reduced by this amount.
Therefore, $200 billion will still be the incremental amount to the GDP
Answer:
Reserve requirement = 40 / 300
Explanation:
Given:
Excess reserve = $5 million
Total deposit = $300 million
Total loan = $255 million
Computation of reserve requirement:
Reserve requirement = (Total deposit - Excess reserve - Total loan) / Total deposit
Reserve requirement = ($300 - $255 - $5) / $300
Reserve requirement = ($300 - $260) / $300
Reserve requirement = ($40) / $300
Reserve requirement = 40 / 300