If the fractional reserve system did not exist,
a. the banking system could not create money
b. the money multiplier would be infinite
c. banks would loan out every penny of their deposits
d. banks would be highly susceptible to bank runs
e. the banking system would realize maximum profit
A
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The minimum efficient scale is
A) the plant size that yields the most profit. B) the smallest output level where the firm finally reaches productive efficiency. C) the level of operation where long-run average costs are lowest. D) the level of output where diminishing returns have not set in yet.
In an economy with a population of 300 million persons, 130 million hold civilian jobs and 8 million are not working but are looking for jobs. The unemployment rate is
a. 6.2 percent. b. 8.6 percent. c. 2.7 percent. d. 9.4 percent. e. 5.8 percent.