You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC: 
If you offer to give the other island 1 coconut for every 4 fish they give you, then they will:
A. refuse your offer because they have a comparative advantage in fish.
B. accept your offer because their opportunity cost of a coconut is greater than 4 fish.
C. accept your offer because your opportunity cost of a coconuts is less than 4 fish.
D. refuse your offer because they can produce as many coconuts as you can.
Answer: B
Economics
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A bank has excess reserves of $6,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be
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