Engineers for The All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output. Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases.

Which of the following is not a major institutional investor in the stock market?

A) Mutual funds B) Pension funds C) Insurance companies D) Commercial banks

The non-democratic character of the Board of Governors of the Federal Reserve System helps support ________

A) the political business cycle B) the time-inconsistency problem C) its independence D) rational expectations of Federal Reserve behavior