The crowding-out effect can be:

When the Fed buys $100 million of securities from a commercial bank, the

A) monetary base increases. B) money supply decreases. C) bank's reserves decrease. D) required reserve ratio decreases. E) bank is risking its depositors' money.

A justification for patents is that without patents consumer surplus would be

A) larger than with the patent. B) zero since the product would not be invented. C) only slightly smaller than with the patent. D) zero since the monopoly would be a revenue maximizer.