Table 13.2ABC Bank Balance SheetAssetsLiabilitiesTotal reserves$80,000Transactions accounts$200,000Loans120,000??Refer to Table 13.2. With total reserves of $80,000 and a required reserve ratio of 25 percent, ABC Bank could support maximum transactions account balances of

When the price of a normal good falls, then:

a. both the income and substitution effects combine to cause the quantity demanded to increase. b. the substitution effect will cause people to buy more because the good is relatively less expensive. c. the income effect will cause people to buy more because of the increased purchasing power associated with the lower price. d. all of these.

Menu costs are the costs of:

A. changing prices. B. running a restaurant. C. changing production. D. increasing aggregate demand.