The average total cost curve of a natural monopoly is always

All of the following have enhanced the Fed's credibility in conducting monetary policy except

A) discontinuing the policy of announcing whether it considered the economy to be at greater risk of inflation or recession following each FOMC meeting. B) making the minutes of the open market committee meetings public. C) following through with changes it has announced. D) revealing the Fed's target for the federal funds rate.

For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that households decide to increase consumption because of, for example, an increase in consumer confidence. Given this information, we would expect which of the following to occur?

A) an increase in the domestic interest rate B) a reduction in E C) an increase in E D) an increase in investment E) none of the above