If Bank A has excess reserves of $1 million and all other banks in the system do not have any excess reserves, then the amount of additional loans that can be made by the banking system will be:

The reason that the claim that floating exchange rates result in greater economic autonomy for individual countries may not be entirely accurate is that

A) empirical research finds no supporting data. B) policy makers are influenced by the effect of domestic policies on the exchange rate. C) there is no generally satisfactory method for measuring economic autonomy. D) it is based on the assumption of a gold standard. E) countries that run large trade deficits must increase exports to balance trade.

The suggestion that a seller will try to set price based on "what the market will bear" is explicit recognition of the constraint imposed by:

A) the firm's marginal cost of production. B) the price elasticity of demand for that item. C) the firm's competitors. D) the need for most firms to earn positive economic profits over time if they are to remain in business.