Issuing marketable emission allowance permits to polluting firms will result in those firms polluting more than would be desired by the benevolent social planner

Refer to Scenario 14-2. As a result of Kristy's deposit, checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of

A) $8,000. B) $10,000. C) $50,000. D) $100,000.

Twenty years ago, Dr. Montgomery borrowed money from her parents to pay her tuition at graduate school. Now she wants to pay them back. She gives them double what they gave her. According to the rule of 70, what interest rate would have given her parents the same amount of money if they had put it in the bank rather than lending it to their daughter?

a. 3.5 percent b. 4.5 percent c. 5 percent d. 7 percent