If society decides it wants more of one good and ________, then it has to give up some of another good and incur some opportunity costs

An increase in the required reserve ratio will lead to a/an:

a. increase in the monetary base. b. increase in the money multiplier. c. increase in the money supply. d. both b and c. e. both a and c.

John likes to buy cola every month. He prefers to spend $0.10 per can, but is willing to spend as much as $0.15 per can. Usually, a can of cola costs $0.12 . However, due to decreased demand, the price has dropped to $0.11 per can, increasing John's purchasing power. This is an example of the _____

a. income effect b. substitution effect c. accelerator effect d. wealth effect