Refer to the diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by:

In order to impact aggregate demand and the economy, the Fed needs to be able to influence:

A. every measure of the money supply. B. MB only. C. MB and M1 D. M1 and M2.

Open market operations involve:

a. opening the discount window b. buying stocks in the stock market. c. buying and selling government securities in the open market. d. opening new markets for commodities. e. selling failed banks to other banks.