New loans create money directly, but they also create excess reserves in other banks, which leads to still further increases in both loans and the supply of money

Suppose Tyler values a basketball at $20 . Jacqui values a basketball at $25 . The pre-tax price of a basketball $10 . The government imposes a tax of $5 on each basketball, and the price rises to $15 . The deadweight loss from the tax is

a. $25. b. $15. c. $10. d. $0.

In the United States, the wage floor legislated by government below which it is generally illegal to pay workers is known as

A) the minimum wage. B) the wage ceiling. C) the employment gap. D) the going wage.