Required reserves
a. are the minimum amount of legal reserves that a depository institution must have to back up its checkable deposits.
b. currently must be no more than 5% of the total checkable deposits of a depository institution.
c. are equal to 100% of deposits in a fractional reserve banking system.
d. are the minimum amount of reserves that must be loaned out by a depository institution.

He interest rate effect is the change in real gdp caused by the federal reserve adjusting target interest rates. is the change in consumer and investment spending due to changes in interest rates resulting from changes in the aggregate price level. is the change in exports and imports, resulting from changes in the interest rate caused by changes in the aggregate price level. is the change in investment spending and government purchases caused by changes in money demand. is the change in interest rates, caused by changes to government purchases.