Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and demand deposits are the only form of money. A commercial bank receiving a new demand deposit of $100 would be able to extend new loans in the amount of:

A country can benefit by indulging in international trade when:

a. it produces a good in which it has an absolute disadvantage. b. it produces a good in which its trading partner has an absolute advantage. c. it produces a good in which it has a comparative advantage. d. it produces all the goods which are supported by its resources. e. it produces nothing and merely depends on foreign imports.

Name some of the barriers to entry that can be created by a competitive firm to protect profits?