International capital flows tend to reduce the impact of fiscal policy

Suppose there is a bank panic. Which of the following would not be a consequence of this bank panic?

A) Individual banks would have to shrink the value of loans they made. B) The economy would likely enter into a recession. C) Bank total reserves would decrease. D) Bank checking account balances would decrease. E) Required reserves would increase.

The main problem with a regulatory commission setting P = ATC is that the regulated firm will

a. experience a loss b. find its demand curve shifting to the left c. earn economic profits d. refuse to make new purchases of capital e. have little incentive to keep costs down