The characteristic of ease of entry and exit ensures that perfectly competitive firms will be able to earn positive economic profits over the long run

Which of the following was the result of the Federal Reserve's purchase of mortgage-backed securities in 2009?

a. MBS interest rates declined, home mortgage rates declined, and the Fed turned a profit on these operations. b. MBS interest rates declined, home mortgage rates declined, but the Fed had a loss on these operations. c. MBS interest rates increased, home mortgage rates declined, and the Fed turned a profit on these operations d. MBS interest rates increased, home mortgage rates increased, but the Fed had a loss on these operations

The supply-side motivated tax cuts of 1981 during the Reagan administration were aimed at:

A. increasing aggregate demand. B. increasing aggregate supply. C. decreasing aggregate supply. D. balancing the federal budget.