Any firm that operates in an imperfectly competitive market faces a downward-sloping demand curve for its product

An outright sale of government securities by the Fed

A) permanently increases bank reserves. B) temporarily increases bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves.

Diversification

a. increases the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is higher. b. increases the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is lower. c. reduces the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is higher. d. reduces the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is lower.