If the required reserve rate is ten percent and banks do not hold any excess reserves and there are no changes in currency holdings, a $1 million open market purchase by the Fed will result in what change in loans?

Externalities are defined as

a. any transaction external to the firm b. costs or benefits that fall on third parties c. policies that firms undertake to sell products outside the country d. managers' dealings with stockholders outside the firm e. costs of maintaining plant and equipment to avoid the scrutiny of external auditors

Purchasing power parity is the theory that nominal exchange rates are determined:

A. by real exchange rates. B. as necessary for the law of one price to hold. C. by the forces of supply and demand. D. as necessary to achieve the fundamental value of the exchange rate.