An increase in checking account balances equals the initial deposit multiplied by total reserves

The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost

Indicate whether the statement is true or false

If the Fed reduces inflation 1 percentage point and this makes output fall 5 percentage points and unemployment rises 2 percentage points for one year, the sacrifice ratio is

a. 1/5. b. 2. c. 5/2. d. 5.