The Citizens First Bank sells 100,000 of government securities to the Fed. This sale immediately
A) decreases the quantity of money.
B) decreases the bank's assets.
C) increases the bank's required reserves.
D) decreases the bank's checkable deposits.
E) increases the bank's reserves.
Question 2
Deb and Pete have volunteered to help their favorite charity mail out fundraiser information. The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes.
What is Deb's opportunity cost of assembling 1 packet?
A) 4 envelopes
B) 4 packets
C) 160 envelopes
D) 1/4 of an envelope
E) 40 envelopes
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