To increase the money supply the Fed can:
A. Reduce the reserve requirement, reduce the discount rate, or sell bonds.
B. Raise the reserve requirement, reduce the discount rate, or sell bonds.
C. Reduce the reserve requirement, reduce the discount rate, or buy bonds.
D. Raise the reserve requirement, raise the discount rate, or buy bonds.
C. Reduce the reserve requirement, reduce the discount rate, or buy bonds.
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A sudden increase in the market demand in a competitive industry leads to
a. A market equilibrium profits higher than the original equilibrium in the short-run b. A market equilibrium profits equal to the original equilibrium in the long-run c. Both a and b d. None of the above
Diminishing marginal product suggests that
a. additional units of output become less costly as more output is produced. b. marginal cost is upward sloping. c. the firm is at full capacity. d. adding additional workers will lower total cost.