If a commercial bank borrows from the Federal Reserve, the price it pays is

If the Fed injects reserves into the banking system and they are held as excess reserves, then the monetary base ________ and the money supply ________

A) remains unchanged; remains unchanged B) remains unchanged; increases C) increases; increases D) increases; remains unchanged

A business owner makes 50 items a day. He spends 8 hours in producing those items. If hired elsewhere he could have earned $10 an hour. The item sells for $10 each. Production occurs seven days a week. If the explicit costs total $10,000 a month, the accounting profit for the month equals:

a. $1,760 b. $2,240 c. $11,760 d. $5,000