Suppose Paul Allen deposits $1 million cash into his checking account at Bank of America. If the required reserve ratio is 20%, what is the maximum amount of required reserves that this deposit will generate in the banking system?

When government intervenes in a competitive market by imposing an effective price ceiling, we would expect the quantity supplied to ________ and the quantity demanded to ________

A) fall; rise B) fall; fall C) rise; rise D) rise; fall

Consider a world of two countries producing only wheat and cloth. In one hour, residents of Country A can produce 1 unit of wheat and 0.5 unit of cloth, whereas residents of Country B can produce 0.3 unit of wheat and 0.4 unit of cloth. Country A should

export A) wheat and cloth; country B should not export anything. B) wheat and country B should export cloth. C) nothing and country B should export both wheat and cloth. D) cloth and country B should export wheat.