Which of the following groups would most likely to benefit from inflation?

The reserve ratio is the ratio of: a. Federal Reserve member banks to nonmember banks. b. Federal Reserve nonmember banks to member banks. c. Federal Reserve member banks to all U.S. banks

d. a bank's total deposits to its reserves. e. a bank's reserves to its total deposits.

The main problem with a regulatory commission setting P = ATC is that the regulated firm will

a. experience a loss b. find its demand curve shifting to the left c. earn economic profits d. refuse to make new purchases of capital e. have little incentive to keep costs down