In a closed economy, what does (Y - T - C) represent?

Money is created by

A) government taxation. B) banks taking in deposits. C) banks making loans. D) banks paying for depositor's insurance.

Use the following statements to answer the question:

I. Consider the problem of negotiating the price of a rug that costs $100 to make. If there are two buyers (one with a maximum willingness-to-pay of $200 and one with a maximum willingness-to-pay of $250 ), then the situation is no longer a constant sum game. II. The likely outcome from the game described in statement I is that the second buyer will bid a price slightly above $200 (e.g., $201 ) to win the rug. A) I and II are true. B) I is true and II is false. C) II is true and I is false. D) I and II are false.