Consumption is $5.5 trillion, investment is $1 trillion, government expenditures are $1.5 trillion, transfer payments are $.5 trillion, exports are $.75 trillion and imports are $1.25 trillion. What is GDP?

Suppose that the reserve ratio is 20 percent. A bank's customer deposits into her account $100,000 in funds from a check written on an account at another bank

The maximum potential increase in the money supply resulting from this transaction is equal to A) $500,000. B) $0. C) $20,000. D) $200,000.

What does it mean to say that a firm has been made liable?

a. The firm is legally responsible to compensate other parties for damage. b. The firm has begun to treat any external costs as private costs. c. The firm has received the property rights to a disputed resource. d. The firm is required to pay a Pigou tax to the government.