On a certain date the banking system had $2 billion in excess reserves. The legally required reserve ratio was 12.5 percent. Potentially, if these funds were fully loaned out, the banking system as a whole could increase the money supply by a maximum of:
a. $0.25 billion.
b. $2.5 billion

The market demand curve for a given product may be downward sloping even if no person in that market has a downward sloping demand curve

Indicate whether the statement is true or false

Assume that movement from point A to point B represents a 25 percent change in the price level. What would be the corresponding short-run change in the price of inputs?

a. 100 percent
b. 50 percent
c. 25 percent
d. no change