If the Fed fears inflation, it ________ by ________ government securities

Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The perceived price on the part of consumers is

A) Ps. B) P0. C) Pd. D) undetermined without more information.

Which of these is true of the law of diminishing marginal returns?

a. It is a long run phenomena where all inputs are variable. b. It applies mostly to the short run because some inputs remain fixed. c. It is a long run phenomena experienced under monopoly. d. It applies to fixed inputs in the long run. e. It applies to fixed inputs in the short run.