When part of a bank loan does not return to the banking system but rather remains outside the banking system as currency, then the money multiplier ________ in size and the amount of money created by an open market operation ________.
A) increases; decreases
B) does not change; increases
C) decreases; decreases
D) increases; increases
E) decreases; does not change
Question 2
Refer to the figure above. The slope of the production function between ________ and ________ indicates negative returns to labor.
A) Point B; Point C
B) Point A; Point C
C) Point A; Point B
D) the origin; Point A
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