Using the information in the table above, what does GDP equal?

Which of the following must necessarily occur as the quantity of output increases?

a. Average total cost must rise. b. Average variable cost must rise. c. Average fixed cost must fall. d. Marginal cost must rise.

If a banker expects interest rates to fall in the future, her best strategy for the present is

A) to increase the duration of the bank's liabilities. B) to buy short-term bonds. C) to sell long-term certificates of deposit. D) to increase the duration of the bank's assets.