To produce 10 shirts, the total cost is $80; to produce 11 shirts, the total cost is $99. The marginal cost of the 11th shirt is equal to

Suppose that financial market participants expect that the central bank will pursue a monetary expansion in the future. Also assume that the yield curve is initially upward sloping. Given this information, we would expect which of the following to occur?

A) The yield curve will become steeper. B) i2t will increase. C) i2t will decrease. D) The yield curve will become downward sloping.

An increase in the average price level will lead to a decrease in the demand for reserves

a. True b. False Indicate whether the statement is true or false