Refer to the data. The marginal cost of producing the sixth unit of output is:

In the long run, the inflation rate

A) must be equal to the natural unemployment rate. B) can take on any value. C) is equal to the natural inflation rate. D) is zero. E) cannot be negative.

In order to lower the federal funds rate, the Fed ________ government securities in open market operations, so that banks' reserves ________ and the quantity of money ________

A) buys; increase; increases B) sells; increase; decreases C) buys; decrease; increases D) buys; decrease; decreases E) sells; decrease; decreases