Refer to Figure 14.2. Other things equal, an increase in the expected price of an important natural resource would best be represented by a movement from

The reserve requirement is the tool used least frequently by the Fed because it can cause abrupt changes in the money supply.

a. true b. false

Economic theory assumes people make decisions by weighing additions to cost against additions to benefit, which can best be described as

A) additivism. B) capitalism. C) marginalism. D) opportunism. E) rationalism.