Following a new deposit of $500, the loans of a commercial bank increase by $400. In this situation, the reserve ratio is most likely

In the simple Keynesian model of the determination of income, planned investment is

A) an endogenous parameter. B) autonomous and thus an exogenous parameter. C) explained by the model of income determination. D) None of the above.

John paints the exterior of his house and, as a result, his neighbor Christine is able to sell her home for $5,000 more than she could have before. John's house painting:

a. creates a negative externality for Christine. b. shows John is a free rider. c. results in an efficient market outcome for both. d. creates a positive externality for Christine. e. was poorly done.