The marginal cost curve intersects the average total cost curve at the firm's most efficient point of production

When part of a bank loan does not return to the banking system but rather remains outside the banking system as currency, then the money multiplier ________ in size and the amount of money created by an open market operation ________

A) increases; decreases B) does not change; increases C) decreases; decreases D) increases; increases E) decreases; does not change

Suppose Richard Branson withdraws $5 million from his checking account at Bank of America. If the required reserve ratio is 25%, what is the maximum change in deposits in the banking system?

A) -$25 million B) -$20 million C) -$5 million D) -$1.25 million