If the Fed buys $10 million dollars in government securities, and the required reserve ratio is 20 percent, the banking system is able to expand the money supply by:

Refer to above Table 2-2. The geometric average of the increase in real GDP between year 1 and year 2 is

A) 3.1%. B) 3.2%. C) 3.3%. D) 3.8%.

If a competitive firm is losing money then it should:

a. always shut down. b. shut down if its losses are greater than total fixed costs. c. shut down if its total fixed costs are greater than losses. d. raise its price.