Discretionary economic policy is not beneficial in the ________

Suppose the Fed decreases the money supply. In response households and firms will ________ short term assets and this will drive ________ interest rates

A) sell; down B) buy; down C) sell; up D) buy; up

When economic losses are present in a market, firms will tend to

a. exit from the market. b. raise their prices until the break-even point is reached. c. lower their prices, regardless of cost, so they can capture more of the market. d. increase output.