What an economic decision maker must give up when choosing one economic activity over others is known as the

The prospect of future deficits

A) would prompt government to vastly expand discretionary spending. B) limits the ability of government to conduct fiscal policy in the near future. C) requires a government to eliminate all entitlement spending. D) encourages government to conduct expansionary fiscal policy.

Suppose you found $10,000 hidden under a rock and deposited it in a demand deposit account at your bank. If the reserve requirement was 20 percent, your deposit would initially add ____ to total demand deposits and over time increase the money supply by a maximum of ____

a. $2,000; $4,000 b. $2,000; $40,000 c. $10,000; $40,000 d. $10,000; $50,000