A commercial bank has no excess reserves until a depositor places $2,000 in cash in the bank. The reserve ratio is 10%. The bank then lends $1,500 to a borrower. As a consequence of these transactions the bank's excess reserves are:

In the above figure, below what minimum price will a perfectly competitive firm shut down rather than produce?

A) for any price less than $16 per unit B) for any price less than $12 per unit C) for any price less than $8 per unit D) for any price less than $4 per unit

If personal income exceeds national income in a particular year, we can conclude that:

A. transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and taxes on production and imports. B. the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits exceeded transfer payments. C. consumption of fixed capital and taxes on production and imports exceeded personal taxes. D. transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits.