If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of

The "shoe-leather costs" of inflation are the costs from

A) the government taking a higher percentage of interest income. B) higher prices for all goods, including necessities such as shoes. C) confusion as people lose track of real costs and benefits. D) higher taxes due to higher inflation. E) time spent trying to spend money quickly.

An outward shift of a nation's production possibilities frontier can occur due to

A) a natural disaster like a hurricane or bad earthquake. B) a change in the amounts of one good desired. C) an increase in the labor force. D) a reduction in unemployment.