The Case in Point on trade in water suggests that _____ trade in water appears to be a growth industry.

An increase in government purchases or a decrease in taxes, other things being equal, will tend to:

a. increase interest rates and decrease investment. b. increase interest rates and increase investment. c. decrease interest rates and decrease investment. d. decrease interest rates and increase investment.

Any amount that a bank chooses to keep on hand beyond what it is required to is called:

A. excess reserves. B. excess deposits. C. federal funds. D. extra holdings.