An economy in which output has decreased and prices have increased would suggest that there has been a:

Suppose the government imposes a 20-cent tax on the sellers of iced tea. Which of the following is not correct? The tax would

A. discourage market activity. B. reduce the equilibrium quantity. C. raise the equilibrium price by 20 cents. D. shift the supply curve upward by 20 cents.

Refer to Table 25-2. Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank can make a maximum loan of

A) $0. B) $800. C) $7,200. D) $8,000.