Refer to Figure 9.6. Before this policy was implemented, producer surplus was

Suppose a bank has $600,000 in deposits, a reserve ratio of 20 percent, and bank reserves of $240,000. This bank can make new loans in the amount of

A) $840,000. B) $360,000. C) $120,000. D) $12,000.

If a one percent increase in the population leads to a five percent increase in the quantity sold, an economist would claim

A) the good is elastic with respect to population. B) the good is inelastic with respect to population. C) the good is a fad. D) consumers are misinformed about the quality of the product.