In the figure above, with no government involvement and if the colleges are competitive, how many students are enrolled?

Why does the Fed have imperfect control over the money supply over short periods?

a. Because of unpredictable changes in reserve requirements b. Because the public responds to open market operations in unpredictable fashions c. Because the Fed does not know how much reserves will change when it buys or sells securities d. Because of unpredictable changes in public desire to hold cash and banks' desires to hold reserves

Which of the following will lead to a decrease in the equilibrium interest rate in the economy?

A) an increase in the price level B) a sale of government securities by the Fed C) a decrease in GDP D) an increase in the discount rate E) an increase in the reserve requirement