If a farmer’s opportunity cost of producing 10,000 bushels of wheat is 5,000 fewer bushels of soybeans, then his or her opportunity cost of producing 5,000 bushels of soybeans must be 10,000 fewer bushels of wheat.

According to the quantity theory of money, the quantity of money determines the

a. interest rate. b. level of real output. c. price level. d. level of employment.

Fiscal policy is

a. a change in money supply designed to change total spending. b. a change in interest rates designed to change total spending. c. a change in government purchases or net taxes designed to change total spending. d. a change in government regulations designed to change total spending. e. a change in policy stance by the Federal Reserve designed to change total spending.