In order to get his bachelor's degree, Timothy gave up an offer for a full time job as a bartender. Therefore, Timothy incurred an opportunity cost

The deadweight loss from a rent ceiling below the equilibrium rent is smallest when the supply of housing is

A) perfectly elastic. B) elastic but not perfectly elastic. C) unit elastic. D) inelastic but not perfectly inelastic. E) perfectly inelastic.

Assume that the M1 multiplier is 3.0 and the monetary base is $200 billion. If M1 is currently equal to $600 billion and the Federal Reserve wishes to raise the level to $690 billion, the monetary base should be expanded by

A) $60 billion. B) $30 billion. C) $20 billion. D) $10 billion.