The classical model's theory of the interest rate does not apply in the short run

The Federal Reserve responded to the 2008 financial crisis in several ways. Which of the following is not one of the ways the Fed responded?

A) The Fed made investment banks eligible for discount loans. B) The Fed lowered the required reserve ratio on demand deposit accounts in order to increase the amount of bank reserves. C) The Fed helped JP Morgan to acquire Bear Stearns, a nearly bankrupt investment bank. D) The Fed lent investment banks Treasury securities in exchange for mortgage-backed securities.

The difference between the marginal expenditure and the wage is greater when the supply curve of labor is

A) less elastic at the monopsony optimum. B) more elastic at the monopsony optimum. C) more elastic than the demand curve. D) The difference does not depend on any elasticity.