The demand for a luxury good whose purchase would exhaust a big portion of one's income is

In the simple deposit expansion model, if the required reserve ratio is 10 percent and the Fed increases reserves by $100, checkable deposits can potentially expand by

A) $100. B) $250. C) $500. D) $1,000.

With asymmetric information, firms might be reluctant to improve the quality of their products because

A) it costs them more to produce the better quality product. B) they are not able to completely capture the benefits of the improvement. C) consumers do not value the better product. D) consumers are better informed about the product and value the new product less.