Tony Lai deposits $200 in currency in his checking account at a bank. This deposit is treated as:
A. a subtraction of $200 from the money supply because the $200 in currency is no longer in circulation.
B. no change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits.
C. an addition of $200 to the money supply because the bank holds $200 in currency and the checking account has been increased by $200.
D. an addition of $200 to the money supply because of the creation of a checkable deposit of $200.
Answer: B
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The accounting profit earned by a firm is smaller than its economic profit because accountants include the value of various opportunity costs of production when calculating the accounting profit
a. True b. False Indicate whether the statement is true or false
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