By seeking economic profit, managers are seeking to create value

A fall in the real wage rate ________ firms' profits and leads to ________ in the quantity supplied

A) does not change; no change B) lowers; a decrease C) raises; an increase D) raises; a decrease E) lowers; an increase

Suppose the required reserve ratio is 8% and the Fed purchases $100 million worth of Treasury bills from Wells Fargo. By how much is Wells Fargo able to increase its loans?

A) $8 million B) $92 million C) $100 million D) $1.25 billion