If the price level in the United States increases, domestic goods will become relatively more expensive than foreign goods. Consumers will import more and reduce the quantity of domestic goods and services they buy

Even though fixed costs do not affect the output decision, an increase in fixed costs results in a wider range of prices for which the firm operates at a loss

What will be an ideal response?

Fractional reserve banking takes its name from the fact that: a. banks hold only a fraction of their reserves at the bank itself. b. banks keep only a fraction of total deposits on reserve

c. banks reserve only a fraction of their activity for lending. d. all of the above