Suppose you get a tax refund of $20,000 and instead of spending it on items that had been on your wish list for two years, you put it all in your checking account at the First National Bank of Urbana. And if that deposit allows the bank to loan out $17,000 . then the legal reserve requirement must be

If the free market is called upon to provide public goods, then:

a. there will more goods provided than is optimal. b. there will be fewer goods provided than is optimal. c. the market will provide the optimal number of goods. d. the market price will be correct, but the optimal amount of output will not be produced. e. the firms will earn excess profit.

At one time, it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible. More money would flow into a country than out of a country. Is this really a sound economic strategy? What is the relationship between exports and imports?