Which of the following will enable a nation to obtain a combination of consumer goods and capital goods outside its production possibilities curve?

Which action could the Fed use to decrease the money supply?

A) a tax increase B) a decrease in the discount rate C) an increase in the required reserve ratio D) an open market purchase

A shortage will occur whenever

A) price is below the equilibrium price. B) price is above the equilibrium price. C) price is equal to the equilibrium price. D) the supply curve is upward sloping.