Based on the answer above, the price for iPads _____________ and the quantity demanded for iPads ____________

If reserves increase by $7 million and the required reserve ratio is 12%, what is the resulting change in checkable deposits (or the money supply), assuming that there are no cash leakages and that banks hold zero excess reserves?

A) $0.84 million B) $7.95 million C) $5.83 million D) $58.33 million

If a certain automotive part can be purchased in Mexico for 60 pesos or in the United States for $6.25 and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:

A. is less expensive in Mexico. B. costs the same in Mexico and the United States. C. is more expensive in the United States. D. is less expensive in the United States.