At the beginning of the Vietnam War, increased military spending in the United States decreased unemployment

The Fed's purchase of U.S. government securities constitutes a(n):

a. contractionary policy because it lowers the amount of total reserves in the banking system. b. contractionary policy because it lowers the amount of excess reserves in the banking system. c. expansionary policy because it raises the amount of total reserves in the banking system. d. expansionary policy because it lowers the amount of total reserves in the banking system. e. expansionary policy because it raises the amount of required reserves in the banking system.

Firms need to know the shape of a demand curve to use marginal analysis

a. True b. False Indicate whether the statement is true or false