If the Fed buys a $100,000 government security from a bank when the desired reserve ratio is 20 percent and the currency drain ratio is 5 percent, the bank can loan a maximum of

Regulation is necessary when transactions costs are low enough to allow bargaining between a polluter and a victim

Indicate whether the statement is true or false

An economic principle that explains why people pursue different occupations is

A) NAFTA. B) international trade. C) absolute advantage. D) comparative advantage.