Net interest payments made by the government depend on the total federal debt held and on the level of interest rates

The market demand curve in a perfectly competitive market is ________ and the demand curve for a perfectly competitive firm's output is ________

A) downward sloping; downward sloping B) downward sloping; horizontal C) horizontal; downward sloping D) horizontal; horizontal E) downward sloping; upward sloping

In the above figure, the economy is initially at point B. If the Fed increases the quantity of money, there is

A) a movement to point C. B) a movement to point A. C) a shift to AD2. D) a shift to AD1.