Refer to the given balance sheets. If the reserve ratio is 25 percent, the maximum money- creating potential of the commercial banking system is:

Which of the following is true about price elasticity of supply?

A) Price elasticity of supply = Percentage change in quantity supplied / Absolute change in price B) Price elasticity of supply = Percentage change in quantity supplied / Percentage change in price C) Price elasticity of supply = Percentage change in quantity supplied × Absolute change in price D) Price elasticity of supply = Percentage change in quantity supplied × Percentage change in price

Pollution occurs when lumber is produced. If the lumber market is unregulated, there would be

A) overproduction of lumber compared to the efficient amount. B) underproduction of lumber compared to the efficient amount. C) sometimes overproduction and sometimes underproduction of lumber compared to the efficient amount. D) an external benefit to producing lumber.