The balance sheet below is for the First Federal Bank. Assume the required reserve ratio is 20 percent.
Refer to the above information. This bank can safely expand its loans by a maximum of:
A. $20,000
B. $40,000
C. $100,000
D. $200,000
B. $40,000
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Exhibit 21-6 Dollars per British pound QuantityDemanded Dollarsper Pound QuantitySupplied 200 5 600 240 4 480 300 3 410 360 2 360 390 1 330 In Exhibit 21-6, the equilibrium exchange rate is:
A. 5. B. 4. C. 3. D. 2.
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. The market wage is initially W0 and the firm is initially at Point A. Labor supply decreases from S0 to S1. The firm's MRPL curve will shift from MRPL at K1 to MRPL at K2 because
A. the supply of labor decreased, and therefore the productivity of labor decreased. B. the factor substitution effect will cause the firm to substitute capital for the higher-priced labor. C. the output effect led to a decrease in the demand for capital, which in turn decreased the productivity of labor. D. the firm is no longer maximizing profits.