If the Fed increases the money supply,

a. the interest rate increases, which tends to raise stock prices.
b. the interest rate increases, which tends to reduce stock prices.
c. the interest rate decreases, which tends to raise stock prices.
d. the interest rate decreases, which tends to reduce stock prices.

c

Economics

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In the above table, the government sector balance is a

A) surplus of $200 billion. B) deficit of $200 billion. C) surplus of $100 billion. D) deficit of $100 billion.

Economics

Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. Assume the market price is $3 and the firm is currently producing 100 units. If the firm produces zero units in the short run, it will reduce its economic loss by:

A. $300. B. $600. C. $900. D. $1,200.

Economics