Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000, the money supply:

Refer to Figure 2-13. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of both pineapples and coconuts?

A) neither country B) Costa Rica C) Guatemala D) cannot be determined

A monopolist has a marginal cost of $10 and no fixed cost. It faces the following inverse demand curve: p = 80 - q. The monopolist can engage in an advertising campaign that leads to a new inverse demand curve represented by p = 100 - q. What is the maximum amount that the monopolist is willing to spend in this campaign?

A) $650 B) $800 C) $1,000 D) It cannot be determined.