If Q = K2L2 the MPL is

Describe the effect that a surplus of tobacco will have on a cigarette producer's pricing and production decisions.

What will be an ideal response?

When the central bank sells $1,000,000 worth of government bonds to the public, the money supply:

A. increases by $1,000,000. B. decreases by $1,000,000. C. decreases by more than $1,000,000. D. decreases by less than $1,000,000.