By raising or lowering the _______, the Fed changes the cost of money for banks, which impacts the incentive to borrow reserves.

In a perfectly competitive market in the short run, as the market demand increases, the firms ________ their output and their economic profit ________

A) increase; increases B) increase; decreases C) decrease; decreases D) decrease; increases

After the U.S. government had approved the feeding of hormones to U.S. beef cattle, several western European nations restricted the import of beef from the U.S. Which of the following tools of commercial policy had been put to use in this situation?

a. Tariff b. Quota c. Health and safety standards d. Subsidy e. Government procurement