If reserves in the banking system increase by $100, then checkable deposits will increase by $500 in the simple model of deposit creation when the required reserve ratio is

What happens to a monopolistically competitive firm that begins to change an excessive price for its product?

a) The firm will go out of business b) Consumers will substitue a rival's product c) Consumers will boycott the product d) The government will regulate the price

An experienced software engineer starts a new job with a pay package that is 14 percent higher than her previous salary. The expected inflation in the economy is 10 percent. However, the actual inflation in the following year turns out to be 14 percent. Which of the following costs of inflation did she have to bear?

a. Menu costs b. Shoe-leather costs c. Unit-of-account costs d. Time costs