You have $1,000 in your checking account at Generous Savings and Loan (GSL). GSL holds $300 of your money in reserve and makes a $700 student loan to Wilma, who promises to repay the loan with interest. Wilma now has an additional $700 in her checking account. By how much has the money supply M1 increased?

Refer to the figure above. If the average cost faced by the monopolist when it produces and sells the optimal output is $4, ________

A) it makes a loss of $60 B) it makes a loss of $120 C) it makes a profit of $60 D) it makes a profit of $90

Which of the following helps explain why depositors sometimes put their funds in demand deposits rather than NOW accounts?

A) Demand deposits pay interest, whereas NOW accounts do not pay interest. B) Businesses may not hold NOW accounts. C) Checks may be written against demand deposits, but not against NOW accounts. D) Demand deposits are more liquid than NOW accounts.