Refer to Figure 8.1. At the profit-maximizing level of output, total profit is

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

A) $0. B) $4 million. C) $6 million. D) $10 million.

Which one of the following would cause an increase in the demand for hotel rooms in Hawaii?

A) an increase in airfares to Hawaii B) a decrease in airfares to Hawaii C) an upward movement along the demand curve for stays in Hawaiian hotel rooms D) a downward movement along the demand curve for stays in Hawaiian hotel rooms