Tight monetary policy raises the real interest rate, which ________ the demand for dollars, ________ the supply of dollars, and ________ the equilibrium value of the dollar.

When the price rises and the supply curve does not shift, the firms' producer surplus ________. When the price falls and the supply curve does not shift, the firms' producer surplus ________

A) increases; decreases B) decreases; increases C) decreases; decreases D) increases; increases E) does not change; does not change

Assume a firm is producing 1000 units of a good by using two inputs, capital and labor, whose per unit prices are $50 and $20

Assume also that the marginal physical product of the last unit of capital is 25 and the marginal physical product of the last unit of labor is 15. In order to minimize its costs of production, the firm should adjust its combination of inputs by employing more labor and less capital. Indicate whether the statement is true or false