The concept of economic rent is associated with the economist

Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?

A) 30 thousand wrenches B) 10 thousand hammers C) 13 thousand hammers D) 0 wrenches

The figure below shows an IS-LM-FE model for an economy with fixed exchange rates. Initially the economy is at Point A, a triple intersection. Here, the FE curve is steeper than the LM curve.To maintain the fixed exchange rate and keep the economy at Point B, the monetary authority must

A. sell foreign currency and sell domestic government bonds. B. buy foreign currency and sell domestic government bonds. C. buy foreign currency and buy domestic government bonds. D. sell foreign currency and buy domestic government bonds.