A rise in the price level prompts an increase in the demand for credit. This is relevant to the __________ effect

Describe the four distinct tools of policy that the Federal Reserve can use to influence the money supply. How would the Fed use each of these tools to either increase or decrease the money supply?

What will be an ideal response?

Which of the following is true?

a. A lower price will increase your consumer surplus by the amount you were buying originally, times the reduction in the price. b. A lower price will leave unchanged your consumer surplus for each of the units you were already consuming, but will increase consumer surplus from increased purchases at the lower price. c. A lower price will decrease your producer surplus for each of the units you were producing, but will not change producer surplus by changing the quantity sold. d. None of the above is true.