Use the figure below to answer the following question.What area represents consumer surplus after the government imposes the excise tax on the market?

Which of the following explains why a bank holds reserves?

I. Banks are required by law to hold reserves. II. To meet depositors' currency withdrawals III. To use them to make loans to households A) I only B) II only C) I and II D) I, II, and III E) I and III

Suppose an item sells for $125 in the United States and for 62,500 pesos in Chile. According to the law of one price, the nominal exchange rate (pesos/dollar) should be ________

A) 31,313 B) either $125, or 62,500 pesos, but not both C) 0.002 D) 500