Political business cycles are economic fluctuations that occur when discretionary policy is manipulated for public interest

If a country is going to achieve a high economic freedom rating, it must

a. follow rule of law principles and create a stable monetary environment. b. be a political democracy. c. refrain from the imposition of barriers that limit voluntary exchange. d. rely primarily on government expenditures and regulations (rather than markets) to allocate goods and resources. e. both a and c are true.

With a required reserve ratio of 20 percent, an increase in reserves of $10,000 could lead to a maximum increase in checking account deposits in the entire banking system of

A) $2,000. B) $8,000. C) $50,000. D) $100,000.