Using the money demand and money supply model, an open market purchase of Treasury securities by the Federal Reserve would cause the equilibrium interest rate to

In the above figure, at the price level of 140 and real GDP of

A) $15 trillion, firms will not be able to sell all their output. B) $5 trillion, firms will not be able to sell all their output. C) $5 trillion, consumers will not be able to buy all the goods and services they demand. D) $15 trillion, consumers will not be able to buy all the goods and services they demand.

The slope of the utility of wealth curve of a risk-averse person

A) increases as wealth increases. B) decreases as wealth increases. C) is constant. D) is negative.