Microeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economy's resources are idle

Why might Congress benefit from the Fed being self-financed?

A) Self-financing increases Congressional control over the Fed. B) Self-financing reduces the Fed's exposure to external pressures. C) Self-financing gives the Fed an incentive to expand the money supply, which ultimately results in Congress having additional funds to spend. D) Congress does not benefit from the Fed being self-financed; Congress is obliged by the Constitution to allow the Fed to be self-financed.

When a monopolist increases the amount of output that it produces and sells, the price of its output

a. stays the same. b. increases. c. decreases. d. may increase or decrease depending on the price elasticity of demand.