Unlike the GDP deflator, the CPI does not consider goods and services purchased by business and government

As we observe the cost curves graph, we see that the

A) MC curve intersects the ATC curve at its maximum. B) MC curve cannot be U-shaped. C) ATC curve always has a negative slope. D) MC curve intersects the AVC curve and ATC curve at their minimums. E) MC constantly falls as output increases.

Which of the following statements about Fed management of the money supply is correct?

A) Over the past thirty years, the Fed has always stayed within its pre-announced target rates for growth in M2. B) The most common tool used by the Fed is a change in the required ratio of reserves to deposits. C) The rate at which the Fed lends money to banks is called the "Federal Funds rate." D) The Fed must report each week to Congress on the conduct of monetary policy. E) none of the above