Total cost schedule for a competitive firm: If market price is $60, what is the maximum profit the firm can earn?

As the reserve ratio increases, the money multiplier.

a) Increases. b) Does not change. c) Decreases. d) Could do any of the above.

Someone in Germany has just ordered a U.S. car to be exported to Germany. In the U.S. balance of payments, this purchase is a(n)

A) accounting identity. B) special draw. C) surplus item. D) deficit item.