The term economists use to describe a situation in which the economy's overall price level is rising is

The hands-off view of the classical school rests on which of the following two simple propositions about markets?

a. Demand creates its own supply and markets are basically competitive. b. Industrial policy is inevitable and all prices are flexible. c. Market failure occurs and prices are rigid. d. Wages are sticky downward and market failure is inevitable. e. Markets are basically competitive and prices are flexible.

Stealth bank holds deposits of $200 million. It holds reserves of $15 million. It has purchased government bonds worth $75 million. The current value of its loans, if sold at market value, is $130 million. What is the value of the Stealth bank’s liabilities?

a. $20 million b. $200 million c. $5 million d. $330 million