Suppose a bank has demand deposits of $2,500, excess reserves of $125, and a reserve requirement of 25 percent. What is the loss in the money expansion process of the whole banking system if the bank decides to lend out only $100?

Discouraged workers

A) are considered part of the unemployed because they are not working. B) are not considered part of the unemployed because they quit their jobs voluntarily. C) are not considered part of the unemployed because they are not actively seeking work. D) are considered part of the unemployed because they are still in the labor force.

Refer to Figure 14.2. Other things equal, an increase in worker productivity would best be represented by a movement from

A) point A to point B. B) point B to point A. C) point C to point A. D) point C to point B.