Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and demand deposits are the only form of money. A commercial bank receiving a new demand deposit of $100 would be able to extend new loans in the amount of

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

A. A reduction in extraction costs. B. A reduction in user costs. C. A reduction in total costs. D. A reduction in the price of the resource.

Throughout history, governments have used price controls to

A. protect buyers. B. protect sellers. C. serve the “public interest.” D. All of these responses are correct.