If the desired reserve ratio is 10 percent and there is no currency drain, then a $100 increase in the monetary base leads the banking system to increase the quantity of money by

Incentive problems in a business can lead to:

A. ethical problems. B. risk reduction. C. wealth maximization. D. full employment of resources.

Cigarettes served as money in some prisoner of war (POW) camps during World War II. Given this, we would expect to observe

A. only government-issued cigarettes being accepted as money. B. people usually resorting to barter rather than using cigarettes as money. C. prices of other goods expressed in terms of cigarettes. D. no one ever smoking a cigarette.