When people trade goods for money, money is being used as a medium of exchange.

What is the most direct method the Fed uses to change the monetary base?

A) open market operations B) changing the required reserve ratio C) changing the federal funds rate D) changing the level of discount loans

Which of the following statements is correct?

A. Monopoly firms tend to be more internally efficient than competitive firms because they have a single goal of profit maximization B. Monopoly firms are sheltered from competitive forces and such an environment makes them subject to X-inefficiency C. Monopoly firms are in industries with low barriers to entry that tend to lower the cost of producing products D. Competitive firms tend to be more efficient than monopolist firms because they maximize per unit profits, not total profits