Suppose banks keep no excess reserves and that all banks are currently meeting the reserve requirement. the federal reserve then makes an open market purchase of $13 comma 000 from bank 1. use the t-account below to show the result of this transaction for bank 1, assuming bank 1 keeps no excess reserves after the transaction. (remember t-accounts show the changes to a bank's balance sheet.)

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.