A commercial bank has excess reserves of $10,000 and a required reserve ratio of 20%. It grants a loan of $8,000 to a customer, who then writes out a check for $8,000 that is deposited in another bank. The first bank will find its reserves decrease by:

Refer to the table above. What is the marginal rent cost if the firm decides to choose factory Far over factory Very Far?

A) $40 B) $100 C) $150 D) -$150

Working conditions for clothing workers in Bangladesh are very poor. If countries refuse to buy clothing from Bangladesh in order to encourage change, the effect is likely to be that

A) firms will be forced to comply and workers will be better off. B) firms will refuse to comply, but workers will be better off. C) firms will try to comply and workers will be worse off. D) firms will try to comply and workers will be better off. E) regardless of how firms respond, workers will be better off.