Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve reduces the required reserve ratio to 4 percent, then the bank can make a maximum loan of

In the short run for a particular market, there are 5,000 firms. Each firm has a marginal cost of $7 when it produces 200 units of output. One point on the market supply curve is

a. quantity = 5,000 . price = $7. b. quantity = 35,000 price = $35,000. c. quantity = 1,000,000 . price = $7. d. quantity = 1,000,000 . price = $35,000.

An activity that makes some people better off and nobody worse off is a

A. government transfer program such as Social Security. B. reduction in interest rates. C. voluntary exchange. D. price floor that increases income to suppliers.