A government policy of providing free public K-12 education is most consistent with

Which of the following statements is true?

a. If price decreases and demand is relatively elastic then the total expenditure by consumers will decrease. b. If price increases and demand is relatively inelastic then the total expenditure by consumers will decrease. c. Total expenditure by consumers is constant along a linear demand curve. d. All of the above. e. None of the above

If the ratio of net worth to vault cash is .2, the prime rate is .05, and the required reserve ratio is .25, the demand deposit expansion multiplier is

A) 2. B) 4. C) 5. D) .25.