Actual reserves are equal to required reserves plus excess reserves

A supply curve that is horizontal reflects a supply that

A) is elastic. B) is inelastic. C) is unit elastic. D) has a zero elasticity.

Which of the following transactions would take place in the "underground economy"?

A) Matt bought an iPad for $499 but decided to sell it on eBay instead of keeping it. B) Elizabeth tells her mother she's going to work but really goes to see a movie. C) Paul buys 15 gallons of gasoline for $3.29 a gallon, not realizing that $1.50 per gallon of that price goes to the government as tax revenue. D) John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes.