Suppose Fed's purchase of government bonds results in a $120,000 increase in the excess reserves of a particular bank. What would be the applicable reserve requirement for the whole banking system to be able to expand the money supply by $600,000?

In the above figure, if price is equal to P4, the firm will

A) earn positive economic profits. B) incur an economic loss. C) earn zero economic profits. D) shut down.

Due to a scarcity of resources,

a. governments should decide what should be produced b. the government must decide how to allocate available resources c. some members of each society must live in poverty d. every society must choose among competing uses of available resources e. resource availability exceeds the possible uses for available resources