Export subsidies lead to lower prices of exportables for both domestic residents and foreigners

Refer to the table above. If good S is capital intensive, then following the Heckscher-Ohlin Theory

A) country B will export good S. B) country A will export good S. C) both countries will export good S. D) trade will not occur between these two countries. E) both countries will import good S.

If a bank has $100,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $40,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is

A) $30,000. B) $25,000. C) $20,000. D) $10,000.