In the short run, a firm will produce a positive amount of output as long as

The purchase of government bonds by the Fed leads to a(n)

A) increase in the demand of bonds and a decrease in the price of bonds. B) increase in the supply of bonds and a decrease in bond prices. C) decrease in the demand of bonds and an increase in the price of bonds. D) decrease in the supply of bonds and an increase in bond prices.

When the MPC gets smaller, the spending multiplier:

a. gets larger. b. gets smaller. c. stays the same. d. gets smaller at low real GDP, and larger at high real GDP. e. gets larger at low real GDP, and smaller at high real GDP.