At zero units of output a firm's variable costs are zero.

________ by the Fed means that the Fed ________

A) Credit easing; bought private securities from financial institutions B) Credit easing; made loans directly to home buyers C) Credit easing; tried to lower long-term interest rates D) Quantitative easing; required private banks to increase their lending to home buyers E) Quantitative easing; decreased in the required reserve ratio

Among economists, it is generally believed that

A) the federal budget deficit will be eliminated within 10 years. B) the public debt will be paid off within 10 years. C) entitlement spending will continue to decline. D) the federal government will find it difficult to cut entitlement programs.