To deal with the financial crisis of 2007-2009, the Fed extended its lender of last resort function to include institutions other than banks

For a given level of reserves, a decrease in the reserve requirement ratio will

A) decrease legal reserves and decrease the money supply. B) increase legal reserves and decrease excess reserves C) decrease legal reserves and increase excess reserves. D) decrease excess reserves and decrease the money supply.

A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?

A) The straight-line boundary shows opportunity cost, whereas the concave boundary does not. B) The straight-line boundary illustrates constant opportunity costs, whereas the concave boundary illustrates increasing opportunity costs. C) A straight-line boundary is associated with a command economy, whereas a concave boundary is associated with a free-market economy. D) The concave boundary illustrates constant opportunity costs, whereas the straight-line boundary illustrates decreasing opportunity costs. E) The straight-line boundary does not show scarcity, whereas the concave boundary does.