When the Fed purchases U.S. government securities through the open market, the money supply:
a. increases, the interest rate falls, and the quantity of money demanded increases.
b. falls, the interest rate falls, and the quantity of money demanded increases

A stronger U.S. dollar leads to ________ in SRAS and ________ in AD simultaneously

A) a leftward shift; a leftward shift B) a rightward shift; a leftward shift C) a rightward shift; a rightward shift D) a leftward shift; a rightward shift

An increase in capital brings a large increase in output at a ________ quantity of capital and a small increase in output at a ________ quantity of capital because of ________

A) large; small; the greater the quantity of capital the greater the output B) small; large; diminishing returns along the productivity curve C) large; small; diminishing returns along the productivity curve D) small; large; increasing returns along the productivity curve E) large; small; increasing returns along the productivity curve