Given an initial deposit of $5,000 and a legal reserve requirement of 25%, the amount of money potentially created by the banking system is

A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasticity of demand equal to:

A. c(Q/I). B. -b(I/Q). C. Q/(cI). D. c(I/Q).

Net exports are a ____ proportion of GDP and have recently been ____ for the United States

a. small; positive. b. small; negative. c. large; positive d. large; negative.