An increase in the currency drain ratio ________
A) decreases the size of the money multiplier
B) increases the size of the money multiplier
C) increases the deposits in all banks
D) decreases the size of the monetary base
E) increases the size of the monetary base
A
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What does a production possibilities frontier show?
a) scarce and less scarce resources b) global trade-offs and costs of doing business c) an economy that is producing but not at the maximum d) the maximum amount that an economy can produce
Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces fish and bird reproduction. This causes damage to local fishermen and bird watchers. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen and bird watchers will not suffer any damage. The relevant gains and losses (in thousands of dollars) for the three parties are listed below. WithFilterWithoutFilterGains to Erie$200$400Fisherman$180$50Bird Watchers$130$25When Erie Textiles operates with a filter, the total gain (in thousands of dollars) by all three parties is ________.
A. $600 B. $475 C. $510 D. $985