Suppose The Springfield Bank has loaned $500 to Mr. Kim Chabot for his business. Mr. Chabot repays the loan with a check written against his own bank, the First National Bank. Which of the following is likely to happen as a result of this transaction?

Group of answer choices

The reserves at the Springfield Bank will fall.

The reserves at the First National Bank will increase.

Checkable deposits at the First National Bank will increase.

The First National Bank will make more loans than before.

The reserves and checkable deposits of the First National Bank will decrease.

Suppose the schedule below depicts the demand and supply for bushels of corn in Monroe County, Indiana in October, 1998. (15 Marks)

Price ($)	Quantity Demanded	Quantity Supplied
4	850	115
3.75	900	1100
3.50	950	1050
3.25	1000	1000
3.00	1050	950
2.75	1100	900
2.50	1150	850

1. Now, instead of the above legislation in part (b), the government now decides to provide a subsidy of $0.50 per bushel to each farmer. What is the new equilibrium quantity of bushels of corn? How much do consumers pay for each bushel in this situation? How much do the farmers receive for each bushel in this situation?

2. Under the subsidy in part (d), what is the total government expenditure for this subsidy program?