If the Fed sells bonds through its open market operations, then there is
A) a decrease in interest rates because of the increase in the supply of bonds.
B) an increase in the demand for bonds and a rise in the price of existing bonds.
C) a decrease in interest rates because of the decrease in the demand for bonds.
D) an increase in the supply of bonds and a fall in the price of existing bonds.
D
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Refer to Scenario 5.5. Which of the following statements is true?
A) The expected cost of not fixing the car is less than the cost of fixing it. B) The expected cost of not fixing the car is greater than the cost of fixing it. C) It is not possible to tell whether the expected cost of fixing the car is less than the cost of fixing it, because the probabilities are subjective. D) It is not possible to tell whether the expected cost of fixing the car is less than the cost of fixing it, because the probabilities are not equal.
In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm, total revenue is
A. $130. B. $70. C. $100. D. $30.