The national debt must be paid back in the future

The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals

A) 25 percent. B) 60 percent. C) 75 percent. D) an undetermined amount given the lack of information.

Suppose the required reserve ratio is 20 percent. If banks are conservative and choose not to loan all of their excess reserves, the real-world deposit multiplier is

A) less than 5. B) equal to 5. C) greater than 5. D) equal to 20.