When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

The demand for money will fall for each of the following reasons, except

A) more ATMs. B) higher real GDP. C) lower interest rates on transactions accounts at banks. D) more risky banks.

A difference between the market and the public sector is that

A) competition exists only in the market sector. B) resources are only scarce for the market sector. C) decision making is by majority rule in the public sector but not in the market sector. D) only the public sector produces private goods.