The above figure shows a graph of the market for pizzas in a large town. At a price of $14, there will be

If the reserve ratio is 20 percent, then $100 of new reserves can generate

a. $60 of new money in the economy. b. $250 of new money in the economy. c. $500 of new money in the economy. d. $2,000 of new money in the economy.

The fact that common stockholders are residual claimants means the stockholders:

A. receive their dividends before any other residuals are paid. B. have a claim against the revenue that remains after everyone else is paid. C. are paid any past due dividends before other claims are paid. D. are paid before the bondholders but after any taxes are paid.