Consider a country that produces only two goods: kayaks and coconuts. Suppose it is possible for this country to increase its production of kayaks without producing fewer coconuts. In this case, its current output combination is efficient

Each of the following is a determinant of demand except a. tastes

b. production technology. c. expectations. d. the prices of related goods.

Suppose the central bank of Altoska has raised its reserve requirements from 10 percent to 12 percent. If Trust Bank, a commercial bank, finds that it is not holding enough in reserves to meet the higher requirements, then it is likely to: a. increase its excess reserves

b. buy bonds to increase the size of its reserve assets. c. reduce the quantity of money and loans on the balance sheet. d. borrow from the central bank for a short term.