Pedro, who knows nothing about construction, paid Benito to remodel a room in his house. Two years later, one wall in the remodeled room crumbled because Benito used poor-quality materials. This illustrates which economic problem?

Refer to Table 7-6. With trade, what is the total gain in sword production?

A) 40 B) 60 C) 100 D) 200

Which of the following variables that affect the money stock are outside the direct control of the Federal Reserve?

a. Currency/deposit ratio b. Excess reserve/deposit ratio c. Required reserve/deposit ratio d. The speed of the money creation process. e. Both a and b