The Coffee Nook, a small cafe near campus, sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each. What is the opportunity cost of buying a Russian tea cake?

The textbook asserts that banks create money themselves. How?

A) Banks have their own printing presses, which is permitted by the Fed. B) Banks are allowed to reach well into their required reserves as long as they can demonstrate that it would be profitable to do so. C) Banks, when lending out their excess reserves, unleash a process that can increase the money supply through the deposit expansion multiplier. D) For all of the above reasons.

The fact that business cycles are recurrent but not periodic means that

A) business cycles occur at predictable intervals, but do not last a predetermined length of time. B) the business cycle's standard contraction—trough—expansion—peak pattern has been observed to occur over and over again, but not at predictable intervals. C) business cycles occur at predictable intervals, but do not all follow a standard contraction—trough—expansion—peak pattern. D) business cycles last a predetermined length of time, but do not all follow a standard contraction—trough—expansion—peak pattern.