Someone who has decided that her time is more valuable in nonmarket activities than it is when spent working is considered unemployed.

Gabriela recently got a 10 percent raise. She now purchases 30 percent more in groceries on a weekly basis. Gabriela's income elasticity for groceries is

a. 0.33. b. 0.5. c. 1. d. 3.

If people never withdraw cash from banks and there are no required reserves, how much money can the banking system potentially create for a given amount of new deposits?

A. None. B. The same amount as the new deposits. C. An infinite amount of money. D. The amount of new deposits multiplied by the reserve ratio.