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Q. Henry Trudeau deposits $2,000 in currency in the 1st Street Bank. Later that same day Jane Harris negotiates a loan for $5,400 at the same bank. After these transactions, the supply of money has:

Q. As oil prices rose during 2006, the demand for alternative fuels increased. Ethanol, one alternative fuel, is made from corn. According to an article in Wall Street Journal, the price of tortillas, which are also made from corn, also rose during 2006: "The price spike (in tortillas) is part of a ripple effect from the ethanol boom".

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Business Economics, Economics

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